Markets Live: October 4

Main points: * Dow ends the day up 1.42 per cent* S&P 500 close to 20 per cent fall from its 2011 high * Benanke warns US economy ‘close to faltering’ * FTSE down 2.5 per cent * France and Belgium to guarantee Dexia deposits
A clash outside the Greek Finance Ministry
A clash outside the Greek Finance Ministry

21.17 A welcome outbreak of trading floor cheers erupted on Wall Street shortly before the end of an extraordinary session today. A furious late rally took the Dow Jones Industrial average into positive territory after more than 200 points were lost earlier in the day. In the last hour of trading the Dow moved more than 350 points, ending the day up 1.42 per cent at 10,806.82. The S&P 500 Index saw a similar surge, closing up 2.23 per cent at 1,123.75, after drifting into bear market levels several times during a roller-coaster day.

The Nasdaq rose strongly up 68.99 points, or 2.95 per cent, at 2,404.82 although Apple was not one of the winners after an underwhelming iPhone product launch that saw a slight