Shares rose in Tuesday's session to close higher as the rally from Monday's retreat held. The positive moves seen in the US market came after similar intraday action in the Asian and European markets.
The S&P 500 gained 1.13% while the Dow Jones Industrial Average added 0.74% and the Nasdaq Composite rose 1.95% - all benchmarks erasing losses suffered on Monday.
In Europe, the pan-European Stoxx 600 index rose 0.85% while the German DAX and the French CAC rose more than 1.0% each.
Britain's FTSE 100 also rose slightly, closing down 0.46%.
Earlier, Japan's Nikkei gained 1.48% and Hong Kong's Hang Seng Index jumped 3.15%.
Stock market positivity followed Wall Street's retreat on Monday after Fed Chairman Jerome Powell signaled that the U.S. central bank would move aggressively in the battle to tackle rising inflation.
Tesla shares jump nearly 8%
In individual stocks, Tesla, Inc. (NASDAQ: TSLA), Alibaba Group Holding Ltd, and Boeing Co. (NYSE: BA) were among the major market players in the spotlight.
Tesla shares jumped nearly 8% after the electric vehicle maker opened its Berlin Gigafactory.
Shares of Alibaba jumped more than 11% on the Hong Kong stock exchange following the e-commerce giant's announcement of an increase in its share buyback program. According to the company, the buyout will increase from $10 billion to $25 billion over the next two years.
Elsewhere, Boeing shares ended Tuesday's session up 2.75% to recoup most of the losses suffered on Monday. Shares of the company had fallen 3.6% on Monday after the tragic crash of a Boeing 737 that killed more than 130 people in China.
Gold and oil drop
Powell's remarks also weighed on gold and oil prices on Tuesday, with the precious metal falling to weekly lows and oil gains losing on Monday.
As Treasury yields rose and the US dollar strengthened on likely aggressive Fed action, gold was down 0.73% at $1,921 an ounce. Meanwhile, Brent crude fell 0.47% to $115.46 a barrel. US benchmark West Texas Intermediate crude fell 0.74% to around $111.73 a barrel. Oil's decline on Tuesday wiped out yesterday's roughly 7% rise.
In crypto, Bitcoin recovered from a decline below $41,000 to a rise above $43,000. The BTC-USD pair was trading around $42,820 (as of 5:50 p.m. ET) to sit 3.9% higher in the past 24 hours.