Stock index futures added to strong gains after a disappointing reading on home prices that came in largely as expected, as investors appeared to focus on optimism the European Union would be able to craft a new bailout agreement for Greece.
Prices for U.S. single-family homes declined to a new low for the year. The S&P/Case Shiller composite index of 20 metropolitan areas fell 0.2 percent in March from the month before, which was in line with expectations.
The 20-city composite index at 138.16 is now below the April 2009 low of 139.26 reached in April 2009.
Germany has switched course, and is now willing to allow Greece to restructure its debt, the Wall Street Journal reported over the weekend.
Investors pushed the euro to a three-week high against the dollar. Oil prices also roseon the news.
German unemployment fell less than expected in May, figures released on Tuesday morning showed, but analysts said that although the pace of expansion of the euro zone's biggest economy was slowing a bit, the numbers were not worrisome given the strength seen in the first quarter.