Markets close up after wild ride

WILLIAMS: Good evening.

BRIAN WILLIAMS, anchor: You might want to be strapped in and hang on tight if you're going to follow the US economy and the markets, at least in the near term. It was a wild day today. While nothing has changed about the fundamentals, the US credit rating is not going to be restored to full strength anytime soon, and there are big problems from here to Europe fueling all of this. But if yesterday was Black Monday on Wall Street , today was a dizzying kind of temporary bounce back. The Dow closed up almost 430 points, 4 percent of its value, after screaming higher in the last half-hour of trading. All three of the major indexes gained back at least some of the bad losses of the last two weeks.

WILLIAMS: To start our coverage off tonight, CNBC 's Sue Herera is at the New York Stock Exchange . Sue , I hope you can tell us what's going on here.

SUE HERERA reporting: You know, it really defies explanation, Brian . It was a wild whipsaw day on Wall Street . And of course, that follows yesterday's trading session, which was one of the worst in recent memory. The Dow has now lost about 1500 points in the last two weeks, and investors down here were hoping today the Fed would throw them a lifeline. Ahead of the Federal Reserve 's statement, stocks were up more than 240 points on hopes that the Fed might intervene somehow to stabilize the market.

Unidentified Reporter: Moments away now from that Fed decision.

HERERA: But when it got word of that action...

Offscreen Voice #1: No change in interest rates . No change in interest rates .

HERERA: That was not enough to keep the rally going. Stocks fell more than 200 points.

Mr. STEVE GRASSO (CNBC Market Analyst): It wasn't what I was hoping to hear. And there's nothing that he can say at this point. I'm very doubtful that he can restore investor confidence, and that's the major scare for the markets at this point.

Unidentified Man: Yeah, a quarter for a 100,000.

HERERA: However, the dip was only temporary, and stocks shot up another 600 points to end the day up nearly 430 points.

Offscreen Voice #2: An incredible rally, just a rip-roaring rally.

HERERA: In its statement, the Fed confirmed what a lot of investors had

already decided: Downside risks to the economy have increased. And for the first time , the Fed set a target date for interest rates , saying economic conditions are likely to warrant exceptionally low levels at least through mid- 2013 .

Mr. JOSEPH LAVORGNA (Deutsche Bank): The Fed is hoping to encourage investors to come back in and buy stocks, buy corporate bonds, buy things that still have some yield left.

HERERA: But for many like Arlonia James Davis , a retired realtor in Miami , it will take more than one day to undo the damage.

Ms. ARLONIA JAMES DAVIS: What we were looking forward to in our retirement and having these funds to, you know, to carry us on, it's just dwindling down. And so you wonder, where is it going to end?

HERERA: And some investors are fleeing to gold, sending prices to a new record and Americans to their attics.

Unidentified Woman: You have to sign here.

HERERA: Lee Mueller went to this LA store with some old jewelry and left with $ 1400 .

Ms. LEE MUELLER: It's very good for something I hadn't worn in years. I hadn't worn it in years.

HERERA: And, you know, you can't blame them, Brian , given all the volatility. People are putting their money into gold right now because it keeps hitting records almost every day. Back to you.

WILLIAMS: All right, Sue Herera on Wall Street to start off our reporting on this wild day. Sue , thanks, as always.