WASHINGTON - After one spectacular failure, the $700 billion financial industry bailout found a second life Wednesday, winning lopsided passage in the Senate and gaining ground in the House, where Republicans opposition softened.
Financial markets reacted cautiously to the Senate's passage of the banking bailout plan late Wednesday, with stock index futures falling and indicating a drop when trading resumed Thursday. There was no discernible change in the credit markets after the vote.
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Investors may be taking a wait-and-see approach until the House votes on the plan on Friday. It was the House's defeat of the plan Monday that sent the Dow plunging 778 points. But the caution may also be due to the fact that passage of the plan wouldn't immediately erase the problems in the financial system, including credit markets that are currently stagnant.
Wednesday night, Dow Jones industrial average futures were down 85, or 0.78 percent, at 10,802. The Standard & Poor's 500 index futures were down 9.8, or 0.84 percent, at 1,158.60, and Nasdaq 100 futures were down 17.75, or 1.1 percent, at 1,561.00.