The Dow Jones Industrials grew 134.65 points, to conclude Tuesday at 33,739.30.
The S&P 500 index grabbed 22.58 points to 4,358.24.
The NASDAQ index hiked 78.61 points to 13,562.84.
Palestinian militant group Hamas had launched a surprise attack against Israel on Saturday, prompting Israel to declare war on Hamas. The attack marks the deadliest offensive in 50 years, and has resulted in more than 1,800 deaths from the ongoing violence between Israel and Hamas, which governs the Gaza Strip. The market had a knee-jerk, downbeat reaction to the conflict on Monday, but stocks rallied on Tuesday.
Investors may also be looking past the geopolitical risks caused by the conflict, helped by Friday’s stronger-than-expected September payrolls report and optimism ahead of a slew of third-quarter earnings this week.
Prices for the 10-year Treasury popped, lowering yields to 4.65% from Monday’s 4.77%. Treasury prices and yields move in opposite directions.
Oil prices handed back 59 cents to $85.79 U.S. a barrel.
Gold prices added $9.60 to $1,873.90.