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Tuesday, Sept. 30 - Rebound
After getting smacked down by the sudden defeat of the bailout plan in the House, stocks made a comeback as investors bet that lawmakers would eventually agree on a plan to rescue the economy.

The Dow Jones industrial average rose a whopping 485 points, making up much of the historic 777 point loss in the previous session.

But the credit markets remained frozen. And several closely watched measures of bank lending fear hit all-time highs, as firms continued to hoard funds.

Most of the gains came late in the session after the Federal Deposit Insurance Corporation said it wants to temporarily increase the amount of money it can insure.

The agency's request to raise its $100,000 insurance limit was aimed at making anxious businesses and consumers less likely to withdraw funds from struggling banks. It was also seen by many as an attempt to sway critics of the $700 billion bailout plan.

House lawmakers adjourned for the day in observance of the Jewish New Year. President Bush, meanwhile, took to the airwaves to express his disappointment in the bailout's failure.

"Our economy is depending on decisive action from the government," Bush said. "The sooner we address the problem, the sooner we can get back on the path of growth and job creation."

The bill was set to head to the Senate Wednesday.

NEXT: Wednesday, Oct. 1 - The first hurdle

Last updated September 14 2009: 2:19 PM ET
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