The S&P 500 finished the day 9.13 points, or 0.5 percent higher at 1,854.29, above the all-time high of 1848.38 it reached six weeks ago. But that was short-lived as the index dropped 5.8 percent over fears about emerging markets. The S&P has since bounced back despite poor economic data that many economists have linked to the unusually cold weather.
The Dow Jones Industrial Average gained 61 points, or 0.4 percent, to 16260, and the Nasdaq Composite Index advanced 24 points, or 0.6 percent, to 4316.
Investors have however warned that this rally could taper off, unless there is stronger economic data and the markets have clarity about where the economy is heading.
"What will change [the market's trajectory] is if the economic data over the next few months comes in weaker than expected when the temperature makes it above the freezing level," said Paul Nolte, a portfolio manager at Chicago's Kingsview Asset Management. "That's the one thing that could derail this rally."
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