Financial stocks led Wall Street sharply higher today on investor hopes the Obama administration will create banks to absorb the bad assets weighing down the financial system.

Wall Street’s angst over the ongoing fallout from the credit crisis made for a turbulent end to a volatile week today.

Stocks rose for the third straight session today as oil prices fell sharply and the government reported that the economy grew last quarter at a faster pace than previously estimated.

Wall Street managed a tiny gain today, enough to give the Dow Jones industrial average another record close, after the Federal Reserve stoked some fears of inflation pressures but implied that it is not intent on raising interest rates.

Disappointing retail sales data and a rise in oil prices pushed US stocks lower today as investors, once again worried about oil’s impact on consumer spending, took profits from the market’s July rally.