Last Updated: February 23rd, 2009: 4:50 PM ET---After Monday's bloodbath that left the indices at 12-year lows, the major US equity indices surged following remarks from Fed Chairman Bernanke indicating bank nationalization was no longer likely. The Dow Jones Industrial Average closed up 236 points or 3.3% to 7,351 with all components settling in the green except Microsoft (NASDAQ:MSFT). General Motors (NYSE:GM) led the industrial higher, closing up 25.4%, meanwhile financial shares Citi (NYSE:C) and Bank of America (NYSE:BAC) followed closely behind, both closing up more than 20% on Bernanke's comments. Meanwhile the Nasdaq closed 54 points or 3.9% higher, to 1,442 and the S&P 500 outperformed on the session, closing 30 points higher, or 4%, to 773. The financial sector was the day's best performer, closing with a resounding rally of 10.2%. In his testimony given before the Senate Banking Committee, Fed Chair Bernanke said that the US economy was in a "severe" contraction, adding that this recession may last into 2010 unless policy makers can find a way to stabilize the nation's financial market. While the comments seemed dire to some, other market participants took his comments regarding the lower probability of nationalization as a bullish sign and the broader market rebounded during the remainer of the session.

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