Financial stocks soared Tuesday, as investor confidence that a government rescue plan for the financial sector would eventually get through Congress.


Dow Jones Industrial Average

was up more than 400 points in recent trading, a day after losing almost 800 points in the wake of the

House of Representatives'

stunning rejection of a $700 billion plan to buy up toxic assets clogging banks' balance sheets and the credit markets. The NYSE Financial Sector Index was up 363.59 to 5,937.78.

Wachovia Bank

(WB) - Get Report

shares were among the biggest winners. The stock soared more than 90% to $3.49 as


(C) - Get Report

expressed its commitment to its $2.16 billion deal to buy the ailing bank, announced before the failure of the bailout package. Citi shares were jumping 17.4% to $20.83.

Sovereign Bancorp

( SOV) shares also nearly doubled, adding 86.9% to $4.36, after it named

Paul Perrault

to replace Joseph Campanelli as CEO. The move is effective Jan. 3.

A number of regional banks laden with shaky debt were also beneficiaries of the renewed optimism for the rescue plan.

National City

( NCC),

First Horizon

(FHN) - Get Report


Fifth Third

(FITB) - Get Report

shares all were adding more than 30%.

One big loser in the financial sector Tuesday was

Hartford Financial Services Group

(HIG) - Get Report

, after Fitch Ratings on late Monday lowered its outlook on the insurer to negative from stable. The ratings agency cited a decline in capital levels and earnings. Hartford will report third-quarter results on Oct. 29. Shares slid 24% to $37.99.

This article was written by a staff member of