Bank stocks and the broader markets were lifted Tuesday by a better-than-expected consumer confidence report.

The KBW Bank Index rose 4.01%, the Dow Jones industrial average rose 2.37% and the Standard & Poor's 500 rose 2.63%. All three indexes started their ascent in the morning after the Conference Board announced that its Consumer Confidence Index rose to 54.9 in May from a revised 40.8 in April. Economists had expected the index to rise to 42.3.

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