Technology shares led a 1 percent rise in major stock indexes on Tuesday, pushing the S&P 500 to its best levels since mid-October and erasing all of the post-election selloff. The Nasdaq was lifted by a 3 percent gain in Apple Inc's stock to $545.37. The company's shares had dropped last week as investors took profits before a possible tax rise next year.

Coming into Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September. Other large tech stocks also rallied. Texas Instruments gained 3.5 percent to $30.88 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index up 1.9 percent.

The Dow Jones industrial average rose 126.66 points, or 0.96 percent, at 13,296.54. The Standard & Poor's 500 Index was up 14.55 points, or 1.03 percent, at 1,433.10. The Nasdaq Composite Index gained 44.40 points, or 1.49 percent, at 3,031.37. Traders voiced cautious optimism as the pace of negotiations over the "fiscal cliff" quickened. However, representatives from both parties cautioned that an agreement remains uncertain.

Copyright Reuters, 2012