Updated from 2:51 p.m. EDT

Financial stocks rebounded along with the wider market Tuesday, as buying resumed after two straight losing sessions.

National banks like Bank of America ( BAC), Citigroup ( C), JPMorgan Chase ( JPM) and Wells Fargo ( WFC) all climbed more than 6.5%, as the NYSE Financial Sector Index closed up 5.4% to 2,869.

Financial stocks also may have been benefitting from optimism ahead of the Financial Accounting Standards Board meeting later this week, in which it is expected to consider changes to fair value, or mark-to-market accounting rules. Easing the rules would benefit financial companies hammered by illiquid investments in the credit crisis.

BofA shares closed up 13.1% to $6.82. Citi stock added 9.5% to $2.53. JPMorgan shares climbed 7% to $26.58, and Wells Fargo shares added 6.5% to $14.24.

The Hartford Financial Group ( HIG) saw shares dip initially after Moody's Investors Service downgraded its debt, but closed up 1.8% to $7.85.

Fifth Third Bancorp ( FITB) shares added 17.7% to $2.92, after the bank said it had paid a $42.6 million dividend on the preferred equity stake bought by the government through the Troubled Assets Relief Program at the end of last year.
This article was written by a staff member of TheStreet.com.

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