Bank stocks continued to seesaw Wednesday, posting strong gains in early trading after the release of promising economic indicators but retreating in the afternoon amid concerns over a lukewarm response to a government bond issue.

The KBW Bank Index still managed to finish in the black, rising 4.9%. The index was up as much as 7.6% in early morning trading before giving back some of those gains in midday trading. The Dow Jones industrial average gained 1.2% and the Standard & Poor's 500 index rose 1%.

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