The Dow Jones Industrial Average rallied 549.95 points, or 1.62 percent, to 34,511.99. The S&P 500 rose 64.57 points, or 1.52 percent, to 4,323.06. The Nasdaq Composite Index increased 223.89 points, or 1.57 percent, to 14,498.88.
Ten of the 11 primary S&P 500 sectors ended in green, with industrials and financials up 2.74 percent and 2.42 percent, respectively, leading the gainers. Consumer staples fell 0.08 percent, the lone declining group.
U.S.-listed Chinese companies traded mostly higher with eight of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.
"Two topics are getting more and more airtime: inflation, and worries over renewed pandemic lockdowns slowing the economy," Kevin Matras, executive vice president at Zacks Investment Research, said in a note on Tuesday.
On Monday, Wall Street suffered a big rout which saw the Dow plunge more than 700 points, as traders have begun to worry that a resurgence in COVID-19 infections could slow the economic recovery, triggering a broad market sell-off.