Stocks briefly lost their gains after the open on Tuesday, before turning sharply higher in what is expected to be a volatile session.
Following Wall Street's nosedive on Monday, nervous investors awaited a statement from the U.S. Federal Reserve later Tuesday on its outlook on the economy.
The Dow Jones industrial average added 103.99 points, or 0.96 percent, to 10,913.84. The Standard & Poor's 500 Index rose 12.26 points, or 1.10 percent, to 1,131.72. The Nasdaq Composite Index gained 27.59 points, or 1.17 percent, to 2,385.28.