Financial stocks led the rally Tuesday , after JPMorgan instated a 20 percent dividend increase to 30 cents a share, along with a $15 billion stock buyback plan.
After the close, the Fed announced that 4 of 19 bank-holding companies failed stress tests in one or more capital ratios.
In the past three months, however, the tide in financials has turned. The sector, which posted an 18 percent loss in 2011, has been consistently up each month this year.