Business

Wall St gains as banks lifted by Geithner remarks

09:26 am on 22 April 2009

Stocks in the United States rose on Tuesday after Treasury Secretary Timothy Geithner indicated most banks have sufficient reserves to protect against possible losses.

Mr Geithner also said most US banks have enough capital to keep lending.

The KBW bank index climbed 8.1%. JPMorgan jumped 9.6% to $US32.53 and Wells Fargo & Co gained 10.7% to $US18.81.

Results of the stress tests are expected to be issued on 4 May.

Citigroup rose 10.2% to $US3.24 after chief executive Vikram Pandit said he expects the bank to rebound from its current woes and repay "every dollar" it owes the federal government.

The Dow Jones industrial average rose 127.83 points, or 1.63%, to 7,969.56.

Standard & Poor's 500 Index gained 17.69 points, or 2.13%, to 850.08. The Nasdaq Composite Index was up 35.64 points, or 2.22%, at 1,643.85.

Trading was active on the New York Stock Exchange, with about 1.67 billion shares changing hands - above last year's estimated daily average of 1.49 billion.

About 2.45 billion shares were traded on the Nasdaq - above last year's daily average of 2.28 billion.