The US stocks surged over one percent on Tuesday due to the zooming energy shares, as the prices of oil extended their latest rally. On the other hand, the higher-than-expected car sales in January also fuelled the advance in the stock market.
The merger activity also assisted with Office Depot shares gaining 21.6 percent to USD 9.28 following the reports of advanced level of merger talks with Staples Inc. The shares o Staples were up 10.9 percent to USD 19.01.
The S&P 500 has jumped 2.8 percent over two sessions as the bounce back in the prices of oil as well as the hopes of a Greek debt agreement eased some serious concerns about the global economy, but the index has been shut in a trading range between 1,972 and 2,093 since mid-December and is nearly flat since December 31.
The market analysts say so far the current year has been marked by volatility, with the daily trading range of S&P 500 often more than double its average in the past year.
The US crude oil prices also increased 7 percent, before settling at USD 53.05. The Brent and the oil prices in the US have surged nearly 19 percent since the close on Wednesday. The S&P 500 energy index jumped 2.8 percent.
The Dow Jones industrial average surged 305.36 points or 1.76 percent to 17,666.4, while the S&P 500 added 29.18 points or 1.44 percent to 2,050.03. The Nasdaq Composite gained 51.05 points or 1.09 percent to 4,727.74.
The S&P 500 recorded no new lows but 19 new 52-week highs, while the Nasdaq Composite posted 34 new lows and 65 new highs.