Shortly after the closing bell, the Dow Jones Industrial Average rebounded 372.65 points, or 1.49 percent, to 25,425.76 on Tuesday. The S&P 500 was up 34.93 points, or 1.29 percent, to 2,744.73. The Nasdaq Composite Index rose 106.71 points, or 1.46 percent, to 7,414.62, Xinhua news agency reported.
Most of the blue chips in the Dow notched solid gains throughout the day, which helped pare losses of the Dow on Monday.
Ten of the 11 primary S&P sectors extended gains on Tuesday, with the materials sector up over 2 percent, leading the gainers.
Democrats and Republicans reached a temporary deal on border security funding on Monday night, which has lifted investors' risk-on sentiments.
On the economic front, U.S. job openings increased to 7.3 million in December 2018, compared with nearly 6.9 million in November, the Bureau of Labor Statistics said in a JOLTS report on Tuesday.
The report, tracking monthly change in job openings, hiring and quits, is an important indicator to gauge the strength of US labour market.
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