'Fast Money' Recap: Financials Surprise

A late surge in the financials fueled another rally Wednesday.

The Dow Jones Industrial Average jumped 101.63, or 1.21%, to 8,512.28, while the S&P 500 rose 15.73, or 1.74%, to 919.53. The Nasdaq rose 4.98, or 0.28%, to 1,759.10.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said the markets benefited from a late-day surge by the financials ahead of the stress tests that will be released Thursday.

Karen Finerman said the stress test results, which have been been dribbling out in the news media, should have sent the markets in a "tailspin," especially with banks like Bank of America (BAC) reportedly needing $34 billion more in capital.

Instead, she said it was "extraordinary" for Bank of America to be up 17%. She said the fact that bank stocks were up today might help them get the capital they need. "If I were them, I would be preparing an offering right this second," she said.

Tim Seymour said life insurers benefited the most from the rally because they were most at risk with their balance sheets.

Pete Najarian said FDIC Chairman Sheila Blair should get credit for the favorable response to the stress tests. "She gave us the entire playbook when she said the stress tests will give you a vote of confidence in the banks," he said.

Jeff Macke advised viewers to take some profits off the table, but Najarian strongly disputed that approach, saying investors don't have to because they can hold on to their performers with protection puts that will allow them to "sleep at night."