Wall Street rises on stimulus deal, banks

NEW YORK (Reuters) - Stocks rose in a choppy session on Wednesday after lawmakers reached a deal on a $789 billion stimulus package that is seen as key to reviving the recession-hit economy.

Senate majority leader Harry Reid said differences have been bridged between the two versions of the package that had been passed by the House of Representatives and the Senate, and that votes on the final bill could come as early as Thursday.

A pop in the financials sector also provided support as investors went bargain-hunting, but the gains were modest compared to Tuesday's massive sell-off as the government's plan to revitalize the financial sector failed to spur confidence.

JPMorgan Chase was among the Dow's biggest lifts, rising 5.3 percent to $25.93, while the S&P financial index <.GSPF> gained more than 4 percent.

On the downside, Research In Motion was the biggest weight on the Nasdaq, giving up nearly 15 percent at $48.55 after the BlackBerry maker gave a disappointing outlook.

The Dow Jones industrial average <.DJI> rose 61.49 points, or 0.78 percent, to 7,950.37. The Standard & Poor's 500 Index <.SPX> added 6.98 points, or 0.84 percent, to 834.14. The Nasdaq Composite Index <.IXIC> was up 7.56 points, or 0.50 percent, at 1,532.29.

(Reporting by Leah Schnurr; Editing by Leslie Adler)