Investing.com - The Dow snapped a four-day losing streak on Tuesday as a rebound in the lira from historic lows prompted traders to give stocks another chance.
The Dow Jones Industrial Average rose about 0.45%. The S&P 500 rose 0.64%, while the Nasdaq Composite rose about 0.65%.
Risk-on sentiment returned, triggering a wave of buys across the market as a rebound in the lira drew some reprieve for financials, which had sold off a day earlier on concerns about banks' exposure to Turkey's vulnerable economy.
Shares of JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) closed higher for the day.
Analysts warned, however, that economic woes in Turkey are unlikely to go quietly into that good night, as the country is experiencing a "crisis of confidence."
"In our experience, most confidence issues are not 'one and done'; they often need to get worse before they get better. Furthermore, a crisis of confidence is usually a very fluid and dangerous situation because investor and market sentiment can turn for the worse very quickly," Wells Fargo said.
Corporate earnings, meanwhile, helped wrestle investor attention away from geopolitical uncertainty.
Home Depot (NYSE:HD) stock closed lower as above-forecast earnings were overshadowed by lower margin guidance, pressured by expectations for increased input costs amid rising trade tensions.
But Advance Auto Parts (NYSE:AAP) closed 7% higher after reporting better-than-expected quarterly results and raising its outlook for the full year.
Energy stocks, meanwhile, provided a modest lift to the broader averages, despite oil prices reversing intraday gains to settle lower as signs of waning demand for Iranian crude demand were largely ignored.
On the New York Mercantile Exchange crude futures for September delivery fell 16 cents settle at $67.04 a barrel.
Tech stocks, meanwhile, continued to support the broader market, led by gains in shares of Seagate Technology (NASDAQ:STX) and NetApp (NASDAQ:NTAP).
In other corporate news, Kroger (NYSE:KR) stock rallied after the grocer said it would start offering some of its products on Chinese e-commerce giant Alibaba's Tmall Global platform.
"E-commerce enables Kroger to quickly scale to reach new customers and markets where we don't operate physical stores, starting with China," said Kroger chief digital officer Yael Cosset.
Elsewhere, Tesla (NASDAQ:TSLA) remained in focus, revealing its board of directors had formed a special committee to assess a plan by CEO Elon Musk to take the company private, though no formal proposal by Musk had yet been received.
On the economic front, data showing export prices dropped by the most since 2011 and imports rose at the pace in 6-½ years had a muted impact on market direction.
Top Dow Gainers and Losers Today:
Walgreen's (NASDAQ:WBA), McDonald’s (NYSE:MCD) and DowDuPont (NYSE:DWDP) were among the top Dow gainers for the session.
Intel (NASDAQ:INTC), Home Depot (NYSE:HD) and Johnson & Johnson (NYSE:JNJ) were among the worst Dow performers of the session.