Wall Street staged a big advance in the penultimate session of 2008 today after Washington’s latest lifeline to the car industry bolstered hopes that the US government will do whatever is necessary to cut short the recession.

A case of post-election nerves sent Wall Street plunging today as investors absorbing a stream of bad economic news wondered how a Barack Obama presidency will help the country weather a possibly severe recession.

Wall Street turned in another stunning finish today and extended its unprecedented streak of volatility - this time, to the upside - as investors spent a fractious session again struggling with fears about a recession but giving in to a last-hour wave of buying.