The North American markets rebounded Friday following the U.S. House of Representatives approval of the revised US$700-billion bailout plan, with the S&P/TSX Composite Index gaining more than 380 points in the afternoon.

The Toronto index added 167.43 points at 2:20 p.m. to 11,067.97, as similar positive activity was seen across the Dow Jones Industrial Average, Nasdaq and New York Stock Exchange.

The Dow Jones added as much as 290 points in the early afternoon, reaching a high of 10,796.26 around 1 p.m. before dipping down again, while the Nasdaq edged up by 0.43 per cent to 1,985.18 points. The NYSE Composite Index, meanwhile, jumped to a high of 7,417.76, then settled at about 7,179.53 at 2:28 p.m.

The markets were given new life shortly before and after U.S. Congress voted 263-171 in favour of the amended rescue bill, which maintained the original elements of having the U.S. Treasury buy up toxic mortgage-based debt from struggling banks, but added provisions to raise the limit on federal bank-deposit insurance for a year to $250,000 from $100,000, tax breaks, and continued to allow securities regulators to suspend asset-valuing rules.

The House had rejected the original plan, with critics expressing unease at the idea of such extensive government intervention and of giving handouts to Wall Street tycoons who had brought the troubles upon themselves, instead of helping Main Street. But the markets crashed severely following the collapse of the deal, drawing worldwide pressure on U.S. Congress to pass the legislation.