Wall Street's euphoria over a $200bn (€128.46bn) plan from the Federal Reserve turned to caution today, leading stocks to retreat a day after their biggest rally in more than five years.

Wall Street pulled off a stunning comeback today, surging higher in late trading and wiping out what looked to be yet another precipitous decline.

Wall Street advanced today as expectations for an interest rate cut from the US Federal Reserve and an uptick in pending home sales helped offset concerns about another round of subprime mortgage-related losses.

Wall Street wilted today as investors awaiting next week’s Federal Reserve meeting remained uneasy that fallout from the slumping housing market could bring more bank losses and pull the economy into recession.

Wall Street posted a healthy advance today as consumer confidence surged to a 22-month high and quelled investor concerns about the economy a day before the Federal Reserve’s decision on interest rates.