Wall Street rebounds as global market stabilizes

U.S. stocks bounced back Tuesday after sinking for three days, as stocks around the world calmed down.

The Dow Jones Industrial Average gained 90.68 points, or 0.57 percent, to 15,928.56. The S&P 500 rose 10.94 points, or 0.61 percent, to 1,792.50. The Nasdaq Composite Index ticked up 14.35 points, or 0.35 percent, to 4,097.96.

After the rally, the blue-chip Dow snapped five-day losing steak, while the broader S&P 500 and the tech-rich Nasdaq rose for the first time in four trading days.

Pullback took a pause in Asian stocks Tuesday following three days' heavy selling, as India surprised the market by raising interest rates, buoying its rupee which had suffered a hit amid broad selloff in stocks and currencies of emerging markets.

The rout in emerging markets came out largely due to growing concerns about economic prospects and political instability in some emerging markets as well as speculation over the U.S. Federal Reserve's continued withdrawal of its stimulus.

Turkey's central bank is also expected to hike interest rates soon in an attempt to stop its lira's depreciation.

European stocks also closed in positive territory across the board Tuesday, lifting market sentiment on Wall Street.

Before ending higher, the U.S. equity market staged a volatile session amid general expectations that the Fed would announce a new round of tapering of its monetary stimulus after a two-day policy meeting beginning Tuesday.

On the economic front, the Commerce Department said Tuesday that new orders for U.S. manufactured durable goods in December slipped 4.3 percent, falling short of analysts' forecast of a mild advance.

Moreover, U.S. house prices notched the first monthly drop in November 2013 in about a year, but still posted a strong gain on a yearly basis. The 10-City and 20-City Composites appreciated 13.8 percent and 13.7 percent in November year over year, respectively, bucking the trend in a traditionally weak winter season, according to the widely-watched S&P/Case- Shiller Home Price Indices released by S& P Dow Jones Indices.

U.S. consumer confidence rose for the second straight month in January, with the reading standing at 80.7, up from 77.5 in December, according to the Conference Board, a New York-based global research association.

In corporate news, Pfizer shares rallied 2.56 percent to 30.42 U.S. dollars after the pharmaceutical giant beat market consensus on its fourth-quarter earnings.

Shortly after the closing bell, AT&T and Yahoo posted better- than-expected fourth-quarter earnings. However, shares of the two companies fell in after-hours trading.

The CBOE Volatility Index, widely considered as a fear gauge of the market, plunged 9.30 percent to 15.80.

In other markets, oil prices moved up Tuesday as U.S. consumer confidence rose for the second straight month in January.

Light, sweet crude for March delivery moved up 1.69 dollars to settle at 97.41 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery gained 72 cents to close at 107.41 dollars a barrel.

Gold futures on the COMEX division of the New York Mercantile Exchange continued to lose momentum on a strong dollar, with the most active gold contract for February delivery down 12.6 dollars to settle at 1,250.8 dollars per ounce.

The U.S. dollar strengthened against major currencies on the expectations that the U.S. central bank would further scale back its massive bond buying program in the ongoing policy meeting.

In late New York trading, the euro lost to 1.3664 dollars from 1.3669 dollars of the previous session, and the dollar bought 102. 86 Japanese yen, higher than 102.74 yen of the previous session.