U.S. stocks rallied Tuesday after Federal Reserve Chairman Ben Bernanke signaled that nationalization of major banks was not at hand.

The Dow Jones industrial average was up 235.76 points, or 3.31 percent, to 7,350.54. The Standard & Poor's 500 gained 29.68 points, or 3.99 percent, to 773.01. The Nasdaq index added 54.11 points, or 3.90 percent, to 1,441.83.

Bernanke said in his semiannual report to the Senate Banking Committee Tuesday that the recession will end this year and that he would use all available tools to help end it.

The U.S. Conference Board's consumer confidence index for February plunged to a record low at 25, as consumers grew more worried about the recession and soaring unemployment rate.

Meanwhile, the S&P/Case-Shiller home price composite index of 20 metropolitan areas fell 2.5 percent in December from November, compared with a 2.3 percent decline in the previous period, S&P said in a statement.

In corporate earnings, Home Depot Inc., the largest home-improvement retailer, beat analysts' expectations in the fourth-quarter after cutting costs by closing a unit and holding down inventory.

Target Corp. reported that its fourth-quarter net income dropped by 41 percent due to weaker-than-expected sales amid "unprecedented economic conditions."

Shares plunged with all major indexes losing more than 3 percent on Monday. Dow Jones and Standard & Poor's 500 index fell to the lowest closing since 1997.

Source: Xinhua