Wall Street rebounded Monday after the Federal Reserve and other central banks added more cash to their banking systems

The New York Federal Reserve has just injected an additional $2 billion of liquidity in the banking system to help sooth the unstable stock market. The Bank of Japan has put $5 billion in the markets and the European Central Bank $65.3 billion, and the ECB added more than $200 billion last week. Since last Thursday the Fed has added $62 billion in liquidity.

After last weeks poor performance in the Dow Jones industrial and the other indexes, the market actually finished the week off with a slight gain. The only thing predictable about the markets lately is high volatility.

The Dow Jones industrial rose about 55.03 or .42 percent to 13,294.57, and the S&P 500 8.54 or .59 percent to 1,462.18. The Nasdaq index rose about 15.9, or .62 percent to 2,560.79.

Despite the worry and uncertainty over the problems in the subprime mortgage sector, investors were more comfortable today. What started this whole extravaganza is defaults among subprime mortgage holders and borrowers with weak credit, which led to the turmoil on Wall Street and other Stock Markets in the past week.

[via Yahoo]

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