Wall Street has rebounded sharply as a surge in the dollar and a resulting drop in oil prices eased some of investors' worries about losses at mortgage finance company Fannie Mae.

The Dow Jones industrials are up about 302 points at the 11,734 level. The advance more than wipes out the Dow's losses from the previous session, and the blue chips are ending the week sharply higher.

Investors see the drop in oil as a big boost for the economy, because it should allow consumers to spend more freely. For the moment, that has allowed the market to set aside worries about the financial sector, which is still contending with the fallout from the credit crisis.