Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2022.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 26, 2022. Reuters / BRENDAN MCDERMID

U.S. stocks were higher in afternoon trading on Tuesday, with the Nasdaq and S&P 500 both up at least 1%, as technology and shares of other big growth names rebounded from recent losses and Nike rose after it reported upbeat results.

Financial shares also rose as the benchmark 10-year Treasury yield climbed to 2.36%, with the S&P 500 bank index up 2.4%.

The Federal Reserve raised interest rates this month, and policymakers seem to be taking a more aggressive stance toward taming inflation. While higher borrowing costs are a negative for consumers and many businesses, they help to boost the profit outlook for banks.

Apple Inc, Microsoft Corp, Inc, Meta Platforms Inc and Alphabet Inc were among companies giving the biggest boosts to the S&P 500 and the Nasdaq. The S&P 500 technology index remains down about 10% for the quarter so far, among the sharpest declines of the major sectors.

Nike Inc shares were up 2.7% after it beat quarterly profit and revenue expectations and said manufacturing issues pinching sales over the past six months were now in the past.

"It gives investors confidence that the Fed's turned extremely hawkish," said Jim Paulsen, chief investment strategist at the Leuthold Group in Minneapolis. "And yet the equity market seems to be doing fine. Perhaps the bigger risk was the anticipation of Fed tightening, not the actual tightening."

The Dow Jones Industrial Average rose 210.77 points, or 0.61%, to 34,763.76, the S&P 500 gained 43.63 points, or 0.98%, to 4,504.81 and the Nasdaq Composite added 252.62 points, or 1.83%, to 14,091.08.

Tesla Inc was up 5.4% as the electric-car maker delivered its first German-made cars to customers at its Gruenheide gigafactory.

On Monday, Fed Chair Jerome Powell said the central bank must move "expeditiously" to raise rates. When asked what would prevent the central bank from raising rates by half a percentage point at the May 3-4 policy meeting, he responded: "Nothing." Powell is slated to speak again on Wednesday.

The Ukraine-Russia conflict remains in focus, with Ukrainian officials saying the besieged port city of Mariupol is under continuous bombardment as Russian forces redouble their efforts to capture it.

Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 2.53-to-1 ratio favored advancers.

The S&P 500 posted 35 new 52-week highs and no new lows; the Nasdaq Composite recorded 55 new highs and 34 new lows.