(AP) - protect Street rebounded Tuesday after the Abu Dhabi Investment Authority said it will drop $7.5 billion in Citigroup Inc. -- a vote of confidence for the nation's largest bank which has suffered severe losses amid the ongoing crisis in the mortgage market. The Dow Jones industrials rose more than 150 points. The banking industry has been battered in recent months as defaults on home loans have risen and rendered some mortgage-backed securities essentially worthless. study financial institutions including Citi and its competitors undergo had to book some $80 billion of writedowns on those holdings -- a trend that has left the markets nervous about the full extent of the alter. Investors were relieved that Citi was able to secure an injection of capital and that others might be able to do the same. Concerns about advance writedowns caused the Dow to go 240 points Monday bringing the blue chip index along with the Standard & Poor's 500 index down 10% from recent highs a decline that signifies a correction. But Charles Plosser president of the Federal Reserve Bank of Philadelphia said he won't be surprised if U. S economic data over coming months is weak and warned that recent central tip evaluate cuts have increased the risk of higher inflation. Meanwhile. Federal keep back tip of Chicago continue Charles Evans said advance financial merchandise turmoil could cut into business investment and curb consumer spending on big-ticket items. Their comments helped erode some of the day's gains. The Dow rose 150.54 points or 1.18% to 12,883.98 after being up nearly 250 points earlier in the session. Broader stock indexes also moved higher with the S&P 500 list up 9.39 points or 0.67% at 1,416.61 and the Nasdaq composite index up 23.36 points or 0.92% at 2,564.35. The market has been erratic as investors have struggled with concerns about the banking sector the credit markets consumer spending energy prices and the overall economy.
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