Stocks rose on Tuesday, sending the Nasdaq up 3 percent, after data from an industry group showed that consumer confidence rose in May, boosting optimism that the recession may be abating, and a broker upgrade of Apple Inc lifted technology stocks.

Apple shares surged nearly 6 percent to $129.66 and was the top boost on the Nasdaq after Morgan Stanley upgraded the iPhone maker to overweight, saying the company is emerging as the clear leader in the battle over mobile Internet and will see iPhone-driven earnings growth over the next two years.

(Reporting by Edward Krudy; Editing by Padraic Cassidy)

Electronics Iphone Apple inc. Apple