U.S. stocks closed more than 2 percent higher Tuesday, rebounding after a long weekend from their second-worst week for the year as gains in global markets boosted sentiment.
"I think it's just a bounce from a lousy week," said Maris Ogg, president of Tower Bridge Advisors. "There are a number of things coming up (such as bank loan reviews in October) that I think we need to get through before this is over."
The major averages closed up about 2.5 percent for their second-best day of the year. The Dow Jones industrial average ended 390 points higher, slightly off a 401-point gain hit in the minutes just before the close. General Electric jumped 4 percent as the greatest blue chip advancer.
GE won European approval Tuesday for a roughly
The Nasdaq outperformed with gains of more than 2.7 percent, up 1.6 percent for 2015, while the other two averages remain negative for the year so far.
Apple closed about 2.7 percent higher, helping information technology as the second-best performing S&P 500 sector.
The S&P 500 and Nasdaq composite closed out of correction territory, or within 10 percent of their 52-week high. The Dow ended less than 0.2 percent away from exiting correction mode.
"We're pausing to digest a violent selloff," said Adam Sarhan, CEO of Sarhan Capital. "At this stage in the game it's a very important and healthy (development)."
He noted the S&P 500 remains in a range between 1,867 and 1,993, after closing at 1,921 Friday.