(CBS/AP) Wall Street snapped back Monday from last week's devastating losses after major governments announced further steps to support the global banking system, including plans by the U.S. Treasury to buy stocks of some banks.

All the major indexes rose about 7 percent, and the Dow Jones industrials gained nearly 600 points.

The hope on the Street was that the market was finding some footing after eight sessions of devastating losses that sent the Dow down nearly 2,400 points.

While a rebound had been expected at some point, Wall Street can expect to see volatile, back-and-forth trading in the coming days and weeks as investors work through their concerns about the banking sector, the stagnant credit markets and the overall economy.

But the market did appear to take heart when the Bush administration said it is moving quickly to implement its $700 billion rescue program, including consulting with law firms about the mechanics of buying ownership shares in a broad number of banks to help revive the stagnant credit markets and in turn get the economy moving again.

In early afternoon trading, the Dow Jones industrial average rose 582.31, or 6.89 percent, to 9,033.50 after rising as much as 600.95. It was the Dow's largest-ever point gain during a session, surpassing the jump of 503.45 points seen on Sept. 30.

Markets around the world are breathing some new life, as five central banks (including the Federal Reserve and the European Central Bank) have announced today new measures to bolster funding to banks.

The Bank of England, the European Central Bank and Swiss National Bank also said they would provide unlimited U.S. dollars to financial institutions, according to CBS News correspondent Bianca Solorzano.

The Bank of Japan said that it is considering the same.

With the Dow up triple-digits this morning, has the bleeding stopped? Has the bottom on Wall Street been reached?

"When the markets get into this full panic mode as they were most of last week, they're looking for any excuse to stabilize and bounce a little bit," Michael Santoli, senior editor as Barrons, told Early Show anchor Harry Smith. "It looks like we're going to get that this morning."

Meanwhile, the Bush administration is working on implementing its $700 billion financial rescue plan. The White House is consulting with six private law firms to determine the best way to buy ownership stakes in a broad number of banks. The plan to buy shares of banks is aimed at getting capital to financial institutions faster than purchasing their soured mortgage-backed assets.

"Everybody is basically waiting on the decision on where they're going to inject cash," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams in New York. He said with the bond markets closed for the Columbus Day holiday, U.S. government officials are likely holding off on announcement of details about where it might invest money until all major global markets are open.

Neel Kashkari, the assistant Treasury secretary who is interim head of the program, said officials have been developing rules to govern the purchase of soured assets. The announcement contained few details about the government will sweep up bad assets and take stakes in banks.

To assist the European banks, the U.S. Federal Reserve said it was taking actions to assure enough U.S. dollar funds were available to meet demand.

The British central bank was making available $63 billion to the three largest British banks to bolster their balance sheets.

The government move will leave British taxpayers owning as much 47 percent of the Royal Bank of Scotland Group PLC, and 43 percent of Lloyds TSB Group PLC and HBOS PLC, two British banks in the process of merging. A third bank, Barclays PLC said it would not seek government help as it boosts its capital by $11.4 billion.

The hope is that today will mark a watershed, with vast measures of government reassurance finally rekindling some confidence in the shattered banking sector.

Analyst Keith Bowman"The hope is that today will mark a watershed, with vast measures of government reassurance finally rekindling some confidence in the shattered banking sector," said Keith Bowman, an analyst at Hargreaves Landsdown Stockbrokers in London.

Treasury Secretary Henry Paulson said during weekend meetings with global financial powers that his department was working around the clock to carry out the plan. His comments were meant to convince investors that the world's largest economy is moving quickly to get lending restarted and avert what could be a deep and painful global recession.

Those dire concerns sent markets around the world reeling last week, giving the Dow Jones industrial average it worst week on record. Since peaking a year ago, the Dow is now down 40.3 percent. U.S. stocks have lost $8.4 trillion in value over the past year.

Throughout the weekend, the administration worked to restore confidence, using the annual meetings of the 185-nation International Monetary Fund and World Bank to send a message that global finance officials will do what it takes to resolve the crisis.

The Group of Seven major industrial countries issued a five-point action plan that pledged to do everything from preventing major banks from failing to unfreezing credit markets.

President Bush met with G-7 finance officials at the White House on Saturday morning and later traveled to the IMF to meet with the Group of 20, which includes rich countries as well as major developing nations such as China, Brazil, India and Mexico. He stressed the need for cooperation.

In Paris, the 15 nations in Europe's single-currency zone agreed Sunday to steps including temporarily guaranteeing bank refinancings.

The Bush administration over the past six weeks has taken over the nation's two biggest mortgage finance firms, Fannie Mae and Freddie Mac, rescued American International Group, the world's biggest insurance company, and won congressional approval of a $700 billion rescue package for the entire financial system.

As the bailout bill rushed through Congress, Paulson stressed that the major aim was to buy bad assets, primarily mortgage-backed securities, from financial institutions. The hope was that taking those bad loans off the books would encourage banks to return to more normal lending operations and unclog credit flows - the economy's lifeblood.

Paulson said Friday that the government also would use some of the money to buy stakes in banks. The goal is to give banks the resources to resume lending at more normal levels.

That about-face has left the administration trying to decide how much to devote to buying bad assets and how much to use for stock purchases.

Lawmakers who pushed to include the stock purchase program in the rescue bill over initial administration objections say the stock purchases can start much faster than the effort to buy bad assets and help restore market confidence sooner.

Sen. Charles Schumer of New York, chairman of the Joint Economic Committee, said Sunday that he hoped the administration would announce as soon as Monday that the stock purchases were being launched.

"We're beginning a downward spiral, not just in finance ... but in the whole economy. We need quick action," Schumer said on ABC's "This Week."

"The markets have been lacking a comprehensive government response across the world. They've had these one-off measures, nothing that was comprehensive before," Barrons' Santoli said.

He said the recapitalization of banks will give them the money needed to go out and do the basic lending and borrowing transactions they've been reluctant to do so long.

The LIBOR rate (the interest rate banks charge to loan money to each other) has eased up overnight, providing further hope. But Santoli said it's going to be "a long convalescence process where these banks get more comfortable lending. Some people are saying that governments are going to have to literally guarantee all banking transactions, even short-term ones, and in fact maybe even force banks to go out and lend. You can give them the money but if they're not willing to go out and lend it, then it doesn’t do what it's supposed to."

As Santoli said, "Confidence follows capital and we're finally getting these banks into a position where we can say, 'Look, we're not going to let you go under, we're going to make sure you have another capital for now,' and then they may literally force them to participate in the routine overnight transactions."

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