Stocks are soaring today on a coordinated effort by global central banks to flood the banking system with money. While it may seem like great news for investors, this rally in equities shouldn't be trusted.

Central banks announced Wednesday that they were lowering the costs on dollar swaps. Essentially, these swap lines improve liquidity conditions in U.S. and foreign financial markets "by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions during times of market stress," according to the Federal Reserve .

With foreign bank stocks sitting on shaky ground due to their exposure to the European debt crisis, the dollar-swap lines are a life raft. And the announcement was good enough to push Dow Jones Industrial Average higher by nearly 400 points, or 3.4 percent, minutes after the opening bell. Similarly, the S&P 500 climbed 39 points, or 3.2 percent, and the Nasdaq jumped 75 points, or 3 percent.

More Top Stories

All It Takes Is a Greek Story to Further Scare Markets

Even Pros Don't Like Stocks: Could That Be Bullish Sign?

Hedge Fund Elite: What Our 'Best Ideas' Are Now

Fed Members Favor More Easing if Economy Falters

'London Whale,' Who Lost $2 Billion, to Leave JPMorgan

More Top Stories