5:10PM EST: U.S. stocks advanced the most in a month, halting a six-day decline, after Federal Reserve Chairman Ben S. Bernanke’s statement that banks need not be nationalized helped lift equities from their lowest valuations in two decades.

Citigroup Inc. and Bank of America Corp. rose more than 20 percent, sending financial shares in the Standard & Poor’s 500 Index to the first advance in eight days, as Federal Deposit Insurance Corp. Chairman Sheila Bair said large U.S. banks have enough capital. Home Depot Inc., Macy’s Inc. and Nordstrom Inc. climbed at least 10 percent after the retailers reported profit that topped analysts’ estimates. All 24 S&P 500 industries advanced as the index rebounded from a 12-year low.

The S&P 500 added 4 percent to 773.14 for the biggest rally since Jan. 21. The Dow Jones Industrial Average increased 236.16 points, or 3.3 percent, to 7,350.94. The Russell 2000 Index of small companies climbed 4.5 percent to 412.48. Ten stocks gained for each that fell on the New York Stock Exchange, the broadest rally since Dec. 16.

(Bloomberg.com)