Stocks extended gains on Tuesday with the Nasdaq rising 2 percent on strength in semiconductor stocks.

Tech shares rose as concerns over the euro-zone debt crisis eased and semiconductors advanced after TSMC <2330.TW> and UMC <2303.TW>, the world's two largest contract chip makers, forecast chip demand growing in the coming months amid an improving global economy and rising sales of new PCs and other consumer gadgets.

The Dow Jones industrial average <.DJI> gained 153.72 points, or 1.51 percent, to 10,344.61. The Standard & Poor's 500 Index <.SPX> gained 18.32 points, or 1.68 percent, to 1,107.95. The Nasdaq Composite Index <.IXIC> gained 46.65 points, or 2.08 percent, to 2,290.61.

(Reporting by Chuck Mikolajczak)