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NEW YORK, Dec 19, 2008 (AFP) - US stocks headed higher in opening trade Friday after the US government offered automakers a 13.4 billion dollar rescue to avert a collapse of a major sector of the economy.
The Dow Jones Industrial Average rose 65.55 points (0.76 percent) to 8,670.54 and the tech-rich Nasdaq leapt 22.74 points (1.46 percent) to 1,575.11.
The Standard & Poor's 500 broad-market index advanced 5.25 points (0.59 percent) to 890.53.
In an announcement before the market open, the White House said it had agreed to an emergency loan of 13.4 billion dollars to ailing automakers.
The rescue announced could include up to four billion dollars more pending congressional approval.
General Motors and Chrysler were expected to draw on the funds immediately to avert bankruptcy, and will be required to implement new belt-tightening moves and demonstrate their long-term viability.
Chrysler said it had notified the White House that it agreed with all the terms set by the administration for the rescue.
On Thursday, Wall Street slid lower on market concerns over a collapse of oil prices and a lowering of General Electric's credit outlook and that of its financial arm to negative. The Dow lost 2.49 percent, the Nasdaq 1.71 percent and the S&P 2.12 percent.
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