Bargain hunters lift Wall Street

NEW YORK (Reuters) - Stocks rose in choppy trade on Wednesday as investors scooped up financial shares which had been beaten down the previous session on worries about a plan to shore up the banking system.

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 <.BKX> 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 <.DJI> rose 72.64 points, or 0.92 percent, to 7,961.52. The Standard & Poor's 500 Index <.SPX> added 8.68 points, or 1.05 percent, to 835.84. The Nasdaq Composite Index <.IXIC> 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)