Wall Street gains - Good for the World Economy

Wall Street rebounded Tuesday with the Dow Jones Industrial Average gaining 485 points – a 4.7 percent gain. This is a good sign for the world economy despite the failure of the planned bail-out of the US government.

The rebound came a day after a 778-point loss sparked by the U.S. House vote to defeat a bank and mortgage bailout plan aimed at keeping banks afloat and credit markets moving. That drop was one of the largest losses of wealth in contemporary history and sent shockwaves through foreign markets.

The Tuesday rebound came as investors bought sunken stocks and U.S. Senate leaders and President Bush promised passage of a bailout this week.

Crude oil also was back above $100 per barrel with prices at $102 per barrel Tuesday, according to Oil-Price.net. Oil sank Monday with fears of a U.S. recession and frozen credit markets after the U.S. House vote.