Dow Soars 410 Points on Bad-Debt Relief Talk

Updated from 3:32 p.m. EDT

Stocks in New York surged into the close Thursday on late-day 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 410.03 points, or 3.9%, to 11,019.69, and the S&P 500 rose 49.93 points, or 4.3%, at 1206.32. The Nasdaq climbed 100.25 points to 2199.10.

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. ...