The Dow Jones industrial average gained 419.27 points to 12,391.52 points, up 3.5 percent. The Standard & Poor's index rose 4.22 percent to 1,330.65 points on a gain of 54.05 points.

The Nasdaq composite index also rose, up 91.25 points to 2,268.26 points, a 4.19 percent advance.

The 10-year U.S. Treasury note dropped 1 12/32 to yield 3.46 percent.

The dollar was mixed. The euro traded at $1.5630 from $1.5747 Monday, while the dollar traded at 99.64 yen from 97.38 yen Monday.

In Tokyo, the Nikkei index also advanced Tuesday, gaining 1.5 percent on a 176.65 point rise to 11,964.16 points.

In London, the FTSE 100 index gained 189.6 points at the close Tuesday, up 3.5 percent to 5604.00 points.