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
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.
shares were among the biggest winners. The stock soared more than 90% to $3.49 as
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.
( SOV) shares also nearly doubled, adding 86.9% to $4.36, after it named
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.
shares all were adding more than 30%.
One big loser in the financial sector Tuesday was
Hartford Financial Services Group
, 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 TheStreet.com.