Updated from 4:03 p.m. EST

Stocks finished modestly higher Monday afternoon, with the Nasdaq setting a new 30-month closing high as investors grew optimistic ahead of major earnings reports from the technology sector due out later in the week.

The Dow rose 26.29 points, or 0.3%, to 10,485.18; the S&P 500 improved 5.37 points, or 0.5%, to 1127.23; and the Nasdaq climbed 24.86 points, or 1.2%, to 2111.78, after the three major indices sold off Friday on the heels of a weak employment report.

Volume on the New York Stock Exchange was 1.43 billion shares, while 2.21 billion shares changed hands on the Nasdaq. Advances beat decliners by about 3 to 2 on both exchanges.

"I think the upcoming earnings reports are encouraging investors," said Robert Basel, co-head of equity trading at Citigroup. In addition, "as investors analyze Friday's employment report from a longer-term perspective, they like what it means for the rate outlook."

Other Markets

Markets overseas finished lower. London's FTSE 100 was off 0.4% at 4450, while Germany's Xetra DAX was down 0.5% at 3996. In Asia, Hong Kong's Hang Seng finished down 0.3% to 13,352. Japan's Nikkei is closed for a holiday.

Meanwhile, the 10-year Treasury note fell 2/32, yielding 4.09%.

The dollar was stronger vs. the Japanese yen and the euro, which recently touched $1.2746 vs. the U.S. currency. The euro weakened after European Central Bank President Jean-Claude Trichet expressed concern over the currency's rapid appreciation.

If you liked this article you might like

Stocks Stage Impressive Rally

Stocks Stage Impressive Rally

Stocks Manage Slight Rally

Stocks Manage Slight Rally

Tech Stocks Take a Plunge

Tech Stocks Take a Plunge

Tech Stocks in Retreat

Tech Stocks in Retreat

Stocks Make Small Change

Stocks Make Small Change