Bargain hunters lift Wall Street

Shares of JPMorgan climbed more than 7 percent to $26.39, making the stock the top boost to the Dow, while Citigroup added 4.8 percent to $3.51. The S&P financial index was up 4.4 percent, as the KBW Banks index advanced 5.4 percent.

The gains, however, were limited compared to Tuesday's losses as concerns lingered about the plan to revitalize the financial industry.

Investors hoped that a hearing with bank executives on Capitol Hill would elicit support for the sector, after Treasury Secretary Timothy Geithner's announcement on Tuesday of a plan to shore up banks failed to revive confidence.

Lawmakers in Washington sought answers about how the first half of a $700 billion financial rescue plan was spent, amid signs that bank lending remains tight.

The Dow Jones industrial average rose 72.64 points, or 0.92 percent, to 7,961.52. The Standard & Poor's 500 Index added 8.68 points, or 1.05 percent, to 835.84. The Nasdaq Composite Index gained 9.92 points, or 0.65 percent, to 1,534.65.

The financial sector also got a boost from Marsh & McLennan Cos Inc after the No. 2 global insurance broker posted a better-than-expected fourth-quarter profit and forecast higher profits in 2009. The stock jumped 15.5 percent to $21.61.

On Nasdaq gains were capped by Research In Motion , down more than 16 percent to $47.60 on a disappointing outlook, making it the top drag.

(Reporting by Rodrigo Campos; Editing by Tom Hals)