Banking stocks rose with the broader markets Thursday as concerns over the European debt crisis eased.
The KBW Bank Index rose 3.99% to 51.09.
The overall markets closed higher as well after China said it doesn't plan to sell its European bonds and Spain approved budget cuts in a bid to avoid the kinds of debt troubles that have hobbled Greece.
The Dow Jones Industrial Average rose 2.85%; the S&P 500 Index rose 3.29%.
Investors were nonplussed by the release late Wednesday of potential new regulations that would force more banks to write assets down to market value, a controversial change that could hurt their book values.
In other news, Citigroup Inc. rose 16 cents to $4.02 after high-profile hedge fund manager Bill Ackman said that he had bought shares in the New York banking company. Ackman's announcement offset news on Wednesday that the Treasury Department had whittled its stake in Citigroup to 22% from 27%.
JPMorgan Chase & Co. rose 4.23%. Bank of America Corp. rose 4.23%; Wells Fargo & Co., 4.89%; U.S. Bancorp, 3.39%; Zions Bancorp., 3.76%; SunTrust Banks Inc., 3.99% and Fifth Third Bancorp, 6.16%.
