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U.S. stocks rebound after bailout failure |
Baja Real Estate & Economy News
 (CNN) -- Stock markets in New York and Europe were rallying Tuesday amid fresh efforts in Washington to resurrect a $700 billion bailout plan aimed at stabilizing the U.S. economy following weeks of turmoil that have transformed the global financial landscape.
Traders see red around the world after the failure of the U.S. bailout plan.
The bailout proposal, which would give U.S. Treasury Secretary Henry Paulson the authority to buy up toxic mortgage-related assets in troubled banks, was rejected Monday by the House of Representatives, prompting massive losses on Wall Street with the Dow Jones plunging 777 points -- its worst performance since the 1987 stocks crash.
But the Dow Jones gained 274 points in early trading amid renewed hopes that lawmakers will pass a revised bailout package before the end of the week
Art Hogan, chief market strategist for Jefferies & Co., told CNN that a possible rebound in the stock market -- and for bank stocks in particular -- was not just a case of bargain hunting.
"If the sell-off was predicated on us not passing a rescue package yesterday, then there's a common belief that we'll get a rescue package sometime this week," Hogan said.
The credit crisis that prompted the bailout proposal, and attempts to revive the plan, are likely to be the focus of attention for investors once again Tuesday.
U.S. President George W. Bush said Tuesday he remained disappointed by the House's failure to pass the financial bailout package, but he would continue to work for its approval.
"I am disappointed by the outcome but I assure our citizens and citizens around the world that this is not the end of the legislative process," the president said in televised remarks from the White House.
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