The Dow Jones Industrial Average rose 92.20 points, or 0.28 percent, to 32,849.74. The S&P 500 added 3.96 points, or 0.10 percent, to 3,821.62. The Nasdaq Composite Index increased 1.08 points, or 0.01 percent, to 10,547.11.
Seven of the 11 primary S&P 500 sectors ended in green, with energy and communication services up 1.52 percent and 0.72 percent, respectively, outpacing the rest. Consumer discretionary dipped 1.13 percent, the worst-performing group.
The above market reactions came after four consecutive sessions of losses on Wall Street as hawkish talk from the Federal Reserve stoked fears of a looming U.S. recession.
The U.S. Commerce Department reported Tuesday that the construction on new U.S. homes fell a seasonally adjusted 0.5 percent in November to 1.43 million. However, building permits for new homes fell 11.2 percent to 1.34 million in November.
Traders were also assessing the potential effects of a surprise policy move by Japan's central bank.
The Bank of Japan caught investors off guard on Tuesday, indicating that it would allow the yield on 10-year government bonds to rise as high as 0.5 percent instead of the previous 0.25 percent cap.
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