US stocks rebounded Monday on news that Dubai's flagship conglomerate Dubai World will restructure some $26 billion in debt of some of its companies, easing default fears. After spending most of the session in the red, the Dow Jones Industrial Average rebounded late in the session, gaining 36.88 points (0.36 percent) to 10,346.80 at the market close. The tech-heavy Nasdaq composite rose 6.48 points (0.30 percent) to 2,144.92 and the broad-market Standard & Poor's 500 advanced 4.25 points (0.39 percent) to a preliminary close of 1,095.74. The Dow Jones industrial average posted its fifth-straight month of gains, while both the Dow and the S&P 500 had their largest monthly percentage advances since July. The abrupt rally on Wall Street followed Dubai World's announcement it will restructure part of the group, including property arm Nakheel. The Dubai government's debt freeze announcement Wednesday had rocked markets as investors feared a possible default by Dubai and its state-owned businesses, which together owe an estimated $80 billion. An index of bank stocks rose more than 3 percent as investors bet bank exposure to Dubai's debt problems would be limited. “It appears the market is coming to the conclusion that Dubai is a small, localized event,” said Charles Lieberman, chief investment officer of Advisors Capital Management, LLC in Paramus, New Jersey.
