The Dow Jones Industrials raced 499.51 points, or 1.5%, to 34,911.20.
The S&P 500 spiked 70.52 points, or 1.6%, to 4,462.21.
The NASDAQ Composite popped 287.50 points, or 2.2%, to 13,619.66.
Bank stocks outperformed as rates moved higher and regional and mid-sized banks reported earnings. Citizens Financial, which beat first-quarter estimates on the top and bottom lines on Tuesday morning, jumped more than 7%. JPMorgan rose more than 2%.
Some heavy hitters in the tech and media industries also rose on Tuesday. Shares of Disney climbed 3.8%, while Netflix added about 3.7%. Microsoft and Alphabet each rose more than 1%.
The gains for stocks came despite a further climb in interest rates, which may be a sign that investors shouldn’t trust Tuesday’s rally, according to at least one expert.
Earnings reports boosted the market on Tuesday. Johnson & Johnson reported mixed quarterly results on Tuesday, with its earnings per share topping earnings expectations while revenue missed analyst estimates.
The pharmaceutical company also lowered its earnings guidance for 2022. Its shares rose 3%, however, boosting the Dow.
Hasbro shares added about 4% despite the toy company posting a weaker-than-expected profit for the previous quarter. Its revenue was in line with estimates. Travelers Companies was down 4% and Lockheed Martin shares lost about 1% after posting mixed results.
Netflix and IBM are scheduled to post their numbers after the bell Tuesday.
On the data front, housing starts and building permits in March came in above expectations, according to estimates from Dow Jones. That appeared to boost homebuilder stocks, with D.R. Horton gaining 3.5%.
Treasury prices dipped sharply, raising yields to 2.94%, from Monday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices dipped $5.68 to $102.53 U.S. a barrel.
Gold prices dropped $36.40 to $1,950.00 U.S. an ounce.