It voted 263-171, in a sharp reversal from the 228-205 against the package that legislators recorded last Monday in a shock defeat that rattled markets.
Reaction on Wall Street turned increasingly negative after the vote. The S&P 500 – which rose as much as 3.6 per cent ahead of the decision – fell 1.4 per cent, closing below its level on Monday after the House voted gainst the bill. It was the worst week for US stocks since markets reopened after the September 11 2001 terrorists attacks.
President George W. Bush immediately signed the legislation, which he has lobbied for vigorously in recent days.
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