North American stock markets are rebounding from deep drops in early trading, today, after U.S. aviation officials played down the possibility that terrorists were responsible for an airliner crash in New York.

Markets were heading for a flat to lower opening when word of the plane crash came in. Traders assumed the worst and started a sell-off.

American Airlines flight 587 jetliner crashed in the Queens section of New York just after taking off from Kennedy Airport, on its way to the Dominican Republic. There is no clear indication of what caused the crash.

The TSE 300 composite index has recovered all of its morning loss and is up 45.8 points at 7,163.9.

The Dow Jones industrial average is down slightly – 27.41 points at 9,580.59. It fell as much as 198 points earlier today. The Nasdaq composite index regained ground. ItÕs up 14.77 to 1,843.25 after dropping as much as 42 points.

Transport stocks have been some of the biggest losers, but like the indexes they have come in off their lows. Bombardier is down 58 cents at $11.41. But, in addition to the crash, there is a report that the World Trade Organization wants the federal government to withdraw cut-rate financing to three of Bombardier’s customers.

Several domestic airlines are back on positive ground, with Air Canada up four cents at $3.88, WestJet Airlines up five cents at $19.65. Air TransatÕs parent company, A.T. Transat, has gained two cents to $6.72.

Trading in shares of Canada 3000, Canada’s second-largest airline, is suspended “pending clarification of financial affairs.” Canada 3000 was declared bankrupt late Sunday.

The S&P 500 index is up 0.13 of a point to 1,120.44, while the Canadian Venture Exchange has fallen 16.52 to 3,016.27.