The Nasdaq rose more than 2 percent on Tuesday on optimism progress was being made toward a

U.S. deficit-reduction plan and after stronger-than-expected earnings.

Shares of Apple rose 0.8 percent to $376.75 before its earnings.

The Dow Jones industrial average <.DJI> was up 210.10 points, or 1.70 percent, at 12,595.26. The Standard & Poor's 500 Index <.SPX> was up 21.38 points, or 1.64 percent, at 1,326.82. The Nasdaq Composite Index <.IXIC> was up 57.84 points, or 2.09 percent, at 2,822.95.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)