By Tim Paradis

The Associated Press

NEW YORK

Markets scored a moderate gain after a volatile session Wednesday that saw the major indexes ratchet up and down on the seesawing price of oil and mixed feelings about the financial sector.

Concerns about mortgage financiers Fannie Mae and Freddie Mac initially dragged down financials. Investors are nervous that the government-chartered companies will need a bailout from the Treasury Department, a move that could wipe out shareholders' equity. Fannie Mae shares tumbled nearly 27 percent, while Freddie Mac shares lost 22 percent.

Some stocks had turned higher earlier in the session after Fannie Mae Chief Executive Daniel Mudd said the concerns about the company's financial position are overblown.

"They haven't offered anything, and we haven't asked for anything," Mudd said, referring to the federal government in a public radio interview Wednesday morning. "I don't anticipate that they will do that."

Light, sweet crude rose 45 cents, to $114.98 a barrel on the New York Mercantile Exchange. The yield on the 10-year Treasury note fell to 3.80 percent.

The dollar rose against other major currencies. Gold prices also rose.

Originally published by BY TIM PARADIS.

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