Wall Street rallied Monday as oil prices, supported by a stronger dollar, fell back and alleviated some of investors’ concerns about accelerating inflation. The Dow Jones industrials gained 130 points.

For the second consecutive week, new stock buybacks were fairly plentiful in number but modest in size. It is bearish that sharply lower stock prices have not triggered a higher volume of buyback announcements.

U.S. stocks rallied the most in five years after the Federal Reserve said it will pump $200 billion into the financial system to shore up banks battered by mortgage- related losses.

The cloud of uncertainty hanging over the credit markets was thrown into sharp relief yesterday as UBS told investors that it still could not be sure about the full financial impact of the credit crunch.