The US markets ended near their best levels, recovering from their worst one-day drop in 2013, following Fed Chairman Ben Bernanke's speech and buoyed by a batch of upbeat economic reports. The CBOE volatility index tumbled more than 11 percent to close below 17.
Dow Jones Industrial Average gained 0.84% or 115.96 points at 13,900.13. Nasdaq Composite rose 0.43% or 13.40 points at 3,129.65. Standard & Poor's 500 added 0.61% or 9.09 points at 1,496.94.
On economic data front, home prices rose in December, according to the S&P Case-Shiller's composite index of 20 metropolitan areas. New home sales jumped in January to a seasonally adjusted annual rate of 437,000, the highest since July 2008. And consumer confidence ticked higher in February to its best level since November.
In key data to watch out for in the US today, durable goods orders for the month of January are seen to contract by 4%. And the pending home sales index is seen rising 3%. Also watch out for weekly mortgage applications data.
In the currency space, the euro trades flat at 1.30 versus the dollar after US Fed's assurances that a bond-buying stimulus program will remain in place. The dollar index is firm above 81.80 levels.
In commodities, Brent crude slips below USD 113 levels.
From the precious metals space, gold rose 1.3 percent on Tuesday, its biggest one-day gain in three months.
READ MORE ON US markets, Wall Street, Dow Jones Industrial Average, Nasdaq Composite, Standard & Poor's 500
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