US STOCKS-Wall St gains, Apple lifts Nasdaq 1 percent

(Updates with Nasdaq rising 1 percent)

NEW YORK, July 10 (Reuters) - U.S. stocks rose in volatile trading on Thursday as optimism about Apple's (AAPL.O) newest iPhone drove the Nasdaq over 1 percent higher and shares of network carrier AT&T (T.N) led the S&P 500 to a session high.

The Dow Jones industrial average .DJI was up 81.50 points, or 0.73 percent, at 11,228.94. The Standard & Poor's 500 Index .SPX rose 8.95 points, or 0.72 percent, at 1,253.64. The Nasdaq Composite Index .IXIC gained 26.96 points, or 1.21 percent, at 2,261.85. (Reporting by Walter Brandimarte; Editing by Jan Paschal)