Stocks rallied further on Tuesday after Citigroup said it was profitable in the first two months of 2009 and a key lawmaker said he expects a rule that makes it harder to bet that a share's price will fall will be reinstated soon.

U.S. Rep. Barney Frank, chairman of the U.S. House financial services committee, said he expects the uptick rule to be restored in about a month. The rule slows the pace of short selling and could help calm volatile markets.

The Dow Jones industrial average <.DJI> jumped 320.50 points, or 4.90 percent, to 6,867.55. The Standard & Poor's 500 Index <.SPX> climbed 38.35 points, or 5.67 percent, to 714.88. The Nasdaq Composite Index <.IXIC> surged 78.40 points, or 6.18 percent, to 1,347.04.

(Reporting by Leah Schnurr; Editing by James Dalgleish)