The Nasdaq Composite Index advanced, bolstered by a surge in the shares of Facebook as better-than-expected earnings brightened the outlook for the social media company.
Shares of Facebook soared, last up 27.3 per cent, as the company posted earnings that exceeded expectations helped by sales of mobile advertising. At least 16 brokerages raised their price targets by as much as US$9 per share, according to Reuters.
"FB's massive audience should be irresistible to brand advertisers as the company preps to launch 15-second video ads, which could be Facebook's next billion-dollar business," analysts at Jefferies & Co wrote in a note, Reuters reported.
Also delivering on the results front was Visa, sending its shares up 4.7 per cent. General Motors earnings beat estimates as well, though shares fell 0.5 per cent.
In late afternoon trading in New York, the Nasdaq Composite Index gained 0.50 per cent, boosted by Facebook, while the Standard & Poor's 500 Index eked out a 0.03 per cent increase. The Dow Jones Industrial Average slipped 0.01 per cent, as declines in shares of Home Depot and Caterpillar offset gains in those of Chevron and McDonald's.