The prospect of a federal bailout for Fannie Mae and Freddie Mac roiled financial stocks, which seesawed throughout the session but managed to finish higher, fueling a modest rise in the broader market.

The Dow Jones Industrial Average snapped a steep two-day losing streak, ending 68.88 points higher, up 0.6%, at 11417.43, down 14% on the year. Its financial components all advanced, led by a 4.3% gain in Bank of America. J.P. Morgan Chase rose 4%, while American International Group gained 2.4%.