Stocks extended gains in late afternoon trading on Tuesday, with the S&P financial index <.GSPF> rising more than 2 percent.

Shares of JPMorgan Chase jumped 4.6 percent to $42.40 after it announced a dividend increase and share repurchase. Shares of Citigroup shot up 5.3 percent to $36.09.

The Dow Jones industrial average <.DJI> was up 163.93 points, or 1.26 percent, at 13,123.64. The Standard & Poor's 500 Index <.SPX> was up 18.17 points, or 1.33 percent, at 1,389.26. The Nasdaq Composite Index <.IXIC> was up 40.56 points, or 1.36 percent, at 3,024.22.

(Reporting By Caroline Valetkevitch; Editing by Jan Paschal)