Stocks rallied today as investors placed bets that a recovery in the financial and housing sectors is more likely to occur following the US government’s move to bail out mortgage giants Fannie Mae and Freddie Mac. The Dow Jones industrials gained nearly 300 points.

Wall Street plunged in another erratic session today as investors worried that the slumping US economy may not only cripple mortgage lenders like Countrywide Financial, but also create problems for other companies like AT&T. The Dow Jones industrials fell nearly 240 points.

US stocks extended their gains today with a modest advance as investors weighed fresh economic data, including a sharp drop in new home sales, for clues as to whether more interest rate cuts are in the offing.

US stocks fell for the second day in a row today after warnings from several home builders raised investors’ concerns about an economic slowdown and comments about inflation from San Francisco Federal Reserve President Janet Yellen offered little comfort.