Stocks surged in the late hours of trading Tuesday after news that JPMorgan Chase (JPM) passed the Federal Reserve stress test.

The Dow Jones Industrial Average closed at 13,177.68, up 1.68% or 217.97 points. The Nasdaq climbed 56.22 points, or 1.88%, at 3,039.88, while the S&P 500 closed at 1,395.96, up 1.81% or 24.87 points.

The Nasdaq closed above 3,000 for the first time since December 2000, according to CNNMoney, and the Dow climbed back up to 13,000 after it reached the mark in late February.

JPMorgan increased its dividend, sending its stock up 7% to close at $43.39 Tuesday. That moved other financial stocks higher as well, including Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and Wells Fargo (WFC).

Homebuilder stocks closed higher, including PulteGroup (PHM) and KB Home (KBH). Mortgage insurers MGIC Investment (MTG), Radian Group (RDN) and MBIA (MBI) also posted gains.

Andrew Scoggin