Stocks Surge as Bulls Roar in Late-Day Rally

Updated from 2:33 p.m. EDT

Into the final hour of trading Thursday, stocks in New York rallied strongly following reports that the government may jump in to take on many of the securities at the core of the credit crisis.

The Dow Jones Industrial Average shot up 358 points to 10,967, and the S&P 500 was better by 40 points at 1197. The Nasdaq was up 79 points to 2178.

The sharp move to the upside accompanied a report from CNBC that Treasury Secretary Henry Paulson was in discussions to initiate a Resolution Trust-like solution to the credit crisis. Following the Savings and Loan crisis in the late 1980s, the government created the trust to manage mortgage-related assets owned by defunct banks. ...