US STOCKS-Wall St jumps as bailout approval nears

* "Fundamental agreement" reached on bailout plan

* Market shrugs off bleak data, GE's profit warning

* Financial shares lead rally

* Dow up 1.8 pct, S&P 500 up 2 pct, Nasdaq up 1.4 pct

(Updates to close)

By Steven C. Johnson

NEW YORK, Sept 25 (Reuters) - Wall Street snapped a three-day losing streak on Thursday as Congress closed in on a deal for a $700 billion financial-sector bailout that investors hope will thaw credit markets and revive lending.

All three major indexes ended up at least 1 percent, with bank shares such as JPMorgan Chase (JPM.N) and Bank of America (BAC.N) leading gains after Senate Banking Committee Chairman Chris Dodd said lawmakers had reached a "fundamental agreement" on the principles of a rescue plan.

Companies seen as economic bellwethers, such as IBM (IBM.N), also rose on hopes the rescue package would spur a pickup in consumer and business spending.

"I certainly think that Congress will pass something and that will help for a little while. It gives us some time to unwind some of the positions and see where we stand when the smoke clears," said Warren Simpson, managing director at Stephens Capital Management in Little Rock, Arkansas.

The Dow Jones industrial average .DJI was up 196.89 points, or 1.82 percent, at 11,022.06. The Standard & Poor's 500 Index .SPX was up 23.31 points, or 1.97 percent, at 1,209.18. The Nasdaq Composite Index .IXIC was up 30.89 points, or 1.43 percent, at 2,186.57.

The package to which Congress tentatively agreed would make a first slug of $250 billion available immediately, the Wall Street Journal reported, and would contain limits on "golden parachutes" paid to company executives.

The Treasury Department declined to comment on earlier statements from Sen. Charles Schumer, the New York Democrat who chairs the congressional Joint Economic Committee, that a deal could be reached Thursday.

U.S. President George W. Bush reiterated on Thursday that the United States was facing a serious financial crisis and urged bipartisan cooperation on the bailout bill.

Bank shares spearheaded Thursday's rally, with Bank of America up 4 percent at $34.37 and JPMorgan up 7.3 percent at $43.46. An index of financial shares .GSPF jumped 2.6 percent.

IBM, the Dow's top advancer, rose 3.1 percent to $120.11.