The Dow Jones Industrials launched 127.65 points to 32,375.09.
The S&P 500 tacked on 20.8 points to 3,972.37.
The NASDAQ Composite jumped 69.72 points to 11,745.26.
Regional banks surged Tuesday, led by First Republic. The beaten-down bank jumped 39.9%, a day after losing 47%. Regionals got a boost after Treasury Secretary Janet Yellen said Tuesday morning that the government is ready to provide further guarantees of deposits if the banking crisis worsens.
Investors now expect a slower pace of tightening from the Federal Reserve in light of the banking crisis. Traders now are pricing in a 83% chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday. The probability of a pause is at 16.6%.
Prices for the 10-year Treasury slid, raising yields to 3.57% from Monday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained 56 cents to $68.20 U.S. a barrel.
Gold prices stumbled $31.40 to $1,951.40 U.S. an ounce.