By Rodrigo Campos
NEW YORK (Reuters) - U.S. stocks rose in choppy trade on Wednesday as investors scooped up financial shares a day after a massive sell-off triggered by concerns over the government's plan to shore up the banking system.
The gains, however, failed to eclipse Tuesday's massive losses as concerns lingered over the plan to revitalize the financial sector.
Shares of JPMorgan
The S&P financial index rose 4 percent, and the KBW Banks index <.BKX> advanced 5 percent.
Investors hoped that a hearing with bank executives on Capitol Hill on Wednesday would elicit further support for the sector, a day after U.S. Treasury Secretary Timothy Geithner's announcement of a plan to shore up banks failed to revive confidence.
"If (the bankers) come off as being strong, definitely in charge of their companies and understanding the issues, the market will take that as a positive. I think that is what we are seeing right now," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.
"We are getting a bounce after being down significantly in all the major averages yesterday, as should be expected."
Lawmakers in Washington sought answers about how the first half of the government's $700 billion financial rescue plan was spent, amid signs that bank lending remains tight.
The Dow Jones industrial average <.DJI> rose 47.79 points, or 0.61 percent, to 7,936.67. The Standard & Poor's 500 Index <.SPX> added 4.88 points, or 0.59 percent, to 832.04. The Nasdaq Composite Index <.IXIC> gained 4.02 points, or 0.26 percent, to 1,528.75.
The financial sector also got a boost from Marsh & McLennan Cos Inc
Bermuda-based insurer XL Capital
On the downside, Nasdaq gains were capped by BlackBerry maker Research In Motion
(Editing by Leslie Adler)
