(Financial winners story updated for market close, JPMorgan, trust and regional bank gains)

NEW YORK ( TheStreet) -- Financial stocks were beneficiaries of the State Street ( STT) earnings surprise on Wednesday morning, but the rally in U.S. financial stocks gathered steam on Wednesday afternoon as part of the day-long equities surge.

The Dow Jones Industrial Average climbed back over the 10,000 point mark, crude oil rallied, and the broad equity markets bullishness helped push financial stocks higher to sustain a full-day rally on Wednesday, unlike Tuesday, when an equities morning rally fizzled by the end of the day.

None of the Wall Street firms could compete with the surge in State Street and the trust banks on Wednesday, with the Boston trust bank leading U.S. equity markets risers with a gain of 10%. More than 15 million shares of State Street were traded on Monday, more than twice its daily trading volume.

A cadre of U.S. trust banks, including Northern Trust ( NTRS) and Bank of New York Mellon ( BK) joined the State Street rally, up close to 7% on Wednesday.


U.S. regional banks also got into the rally, with SunTrust Banks ( STI) up close to 9% at the Wednesday close, the largest rise among the regionals, fueled by M&A speculation -- British banking giant Barclays ( BCS) was reportedly considering a purchase of SunTrust or at least individual SunTrust assets.

Warren Buffett banking sector favorite Wells Fargo ( WFC) had the biggest rally among major U.S. financial stocks, up 6% on Wednesday.

Among the major Wall Street firms, the rally in share price extended in the afternoon session, though the bulge brackets couldn't keep pace with the regional and trust banks.

JPMorgan Chase ( JPM) finished Wednesday up 5%, or $1.82, to a share price above $38.15.

Bank of America ( BAC) shares were up 4.6% on Wednesday, or 65 cents to a share price of $14.71.

Morgan Stanley ( MS) received the fourth-biggest lift among major U.S. financials, up 4.2%, or 98 cents, to a share price near $23.95.

Citigroup ( C) shares finished up 2.9% -- after a flat day of trading on Tuesday - for a gain of a 11 cents to a share price of $3.90.

Goldman Sachsfinished up 2.7% on Wednesday, to a share price of $135. 83, or a one-day gain of $3.57.

For the second straight day, though, some of the biggest gains were reserved for the resurgent European banks.

Spanish banks had among the biggest gains again on Wednesday, with Banco Santander ( STD) up close to 10%, leading the rally of bank stocks from debt-burdened European nations.

Barclays ( BCS) was also up just short of 10% on Wednesday. The Royal Bank of Scotland ( RBS) was not far behind, up 9% in Wednesday trading.

The biggest overseas banking winner of all on Wednesday was China's AgBank, which pulled in $19.3 billion in its dual-listed Hong Kong and Shanghai initial public offering. AgBank is expected to set an all-time IPO proceeds record above $22 billion once its over-allotment of shares is exercised.


Deutsche Bank ( DB) rose more than 6% in Wednesday trading.

UBS ( UBS) and Credit Suisse ( CS) traded in a similar bullish range on Wednesday, up by roughly 5%.

Irish bank stocks were also rallying to a greater extent than U.S. counterparts. The typically volatile shares of Allied Irish Banks ( AIB) were up 7% on Wednesday, mirroring its Tuesday gains and matching the Wednesday performance in shares of the Bank of Ireland ( IRE).

-- Written by Eric Rosenbaum from New York.

RELATED STORIES:


Follow TheStreet.com on Twitter and become a fan on Facebook.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.