US STOCKS-Dow, S&P 500 up on bank plan, Nasdaq slips

(Updates with market trimming gains, Nasdaq lower)

NEW YORK, Oct 14 (Reuters) - The Dow and the S&P 500 rose on Tuesday on the U.S. government's bank rescue plan, but the Nasdaq fell as concerns about recession and the third-quarter profit outlook tempered optimism.

The Dow and the S&P 500 came off their peaks but remained in positive territory.

The Dow Jones industrial average .DJI was up 188.61 points, or 2.01 percent, at 9,576.22. The Standard & Poor's 500 Index .SPX was up 21.06 points, or 2.10 percent, at 1,024.41. The Nasdaq Composite Index .IXIC was down 7.18 points, or 0.39 percent, at 1,837.07. (Reporting by Ellis Mnyandu; Editing by Kenneth Barry)