U.S. stocks closed higher on Tuesday after a choppy trading session as investors eyed developments in the Greece debt crisis and the start of corporate earnings season. ( Tweet This )
The S&P 500 fell below its 200-day moving average for its first time since October 20 before trading as high as 15.02 points up.
"We broke the 200 day moving average ... and around that time the market began to stabilize," said Robert Pavlik chief market strategist at Boston Private Wealth, adding that the S&P 500 also hit a support level of 2,045 and has since bounced back.
The index closed up 12.58 points, or 0.61 percent, at 2,081.34, with materials being the only laggard utilities and consumer staples leading advancers. In fact, consumer staples had their best day of 2015, rising 2 percent for the first time since December 18.
"I think there are two factors here: one is a technical bonce on the S&P from the 2,045 support level and another is the [International Monetary Fund] warning the Fed not to raise rates again," said Peter Cardillo, chief market economist at Rockwell Capital.
The IMF reiterated that the Federal Reserve should not raise interest rates until 2016 on Tuesday.
The Dow Jones Industrial Average ended 93.33 points higher, or 0.53 percent, at 17,776.9, with E.I. du Pont leading decliners and Coca-Cola and Procter & Gamble the biggest advancers. At their lows, blue-chip stocks traded down 217.9 points, while rising as much as 109.87 points.
The Nasdaq closed up 5.52 points, or 0.11 percent, at 4,997.46. The index traded down as much as 89.73 points before coming back to positive territory.
In morning trade, the major averages opened higher but quickly turned lower, weighted down by Greece news.