More news has hit the financial sector. The two largest bank Bank of America (BAC) and Citicorp (C) will be forced to turn to investors to raise additional capital, states David Weidner of MarketWatch. Federal government stress test results that both banks need additional capital to comply with TARP regulations.
Despite this news, the sector has performed fairly well in morning trading. The Financial Select SPDR (XLF), jumped nearly 4% in intraday trading, despite being down 14% for the year.
The Dow Jones Industrial Average added 2.2% and the Nasdaq jumped 1.6%. The S&P 500 climbed to its highest intraday level in four months and was up nearly 2.4%.
Kevin Grewal contributed to this article.