U.S. stocks rose sharply on Tuesday, led by a surge in Tesla shares. The Dow Jones Industrial Average gained 1.4%, the S&P 500 index climbed 1.8%, and the Nasdaq Composite Index jumped 2.6%.
Tesla shares surged 13% after the electric car maker posted better-than-expected earnings and revenue for the third quarter. The company also announced a three-for-one stock split.
Other technology stocks also performed well, with Apple, Microsoft, and Alphabet all gaining more than 2%.
The gains came despite a rise in Treasury yields, which typically weigh on stock prices. The yield on the 10-year Treasury note rose to 1.56%, its highest level since June.
Analysts said the stock market rally was driven by optimism about the economic recovery and strong corporate earnings. However, they also cautioned that the market could be vulnerable to a pullback if interest rates continue to rise.
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