US stocks traded on an upbeat note on Monday, bolstered by solid gains in Tesla shares.

The Dow Jones Industrial Average rose 73.78 points, or 0.26 per cent, to 28,897.55. The S&P 500 was up 16.25 points, or 0.50 per cent, to 3,281.60, Xinhua reported.

The Nasdaq Composite Index increased 67.72 points, or 0.74 per cent, to 9,246.58.

Ten of the 11 primary S&P 500 sectors rallied in midday trading, with both materials and real estate up more than 1 per cent, leading the advancers. The health care group struggled.

Tesla shares soared more than 8 per cent around midday, contributing to the market.

US equities notched solid gains in the week ending January 10 after volatile trading as Wall Street digested geopolitical pressure stemming from tensions between Washington and Tehran, as well as a slew of economic data.

For the week, the Dow climbed 0.70 per cent, the S&P 500 was up 0.94 per cent and the Nasdaq advanced 1.75 per cent.