After the New York Federal Reserve said that business conditions improved in June, U. S. markets closed sharply higher on Tuesday.

The New York Fed, in the survey that falls in the middle of the month, said its headline index extended its run of gains to 11 consecutive months.

With Citigroup shares up 2.84 percent and Bank of America shares up 2.52 percent, financial stocks pushed higher.

General Electric rose 2.57 percent on the day as all 30 Dow Jones industrial average components made gains.

The DJIA, by close added 213.88 points, 2.1 percent, to 10,404.77.

Reaching 1,115.23, the Standard & Poor's 500 index gained 25.60, 2.35 percent.

The Nasdaq composite index of tech-dominated stocks rose 2.76 percent, 61.92 points, to 2,305.88.

2,622 shares rose and 442 declined on a volume of 4.6 billion shares traded, on the New York Stock Exchange.

The benchmark 10-year U. S. Treasury note fell 13/32 to yield 3.308 percent.

From Monday's $1.223, the euro rose to $1.2325.

The dollar, against the yen, fell to 91.45 yen from Monday's 91.46 yen. (With Inputs from Agencies)