Stocks bounce after battering

Stocks bounced Tuesday morning, one day after Congress's failure to pass a $700 billion bank rescue plan triggered a massive selloff that sent the Dow down nearly 778 points, in its biggest single-day point drop ever.
The Dow Jones industrial average (INDU) added 260 points or 2.5% over an hour into the session. The Standard & Poor's 500 (SPX) index rose 3.3% and the Nasdaq composite (COMP) gained 2.8%.
Stocks plunged Monday after the House of Representatives shot down the proposed $700 billion bank rescue plan, surprising investors who had thought that a bipartisan compromise on the deal had been reached over the weekend.
The plan involves the Treasury Department buying up bad mortgage bets from banks, enabling them to start lending to each other again and ultimately defrosting the credit markets. Lawmakers had fought to modify the plan with more taxpayer protections.
However, taxpayers were not entirely swayed, and voter complaints about the plan ahead of the election contributed to House Republicans largely voting against the proposal.