Liz Moyer and Peter Nurse

Investing.com — U.S. stocks closed higher on Tuesday, recovering after the previous session’s weakness sparked by Federal Reserve Chairman Jerome Powell suggesting the central bank could lift interest rates more quickly than expected.

At 4:05 PM ET the index was up 254 points, or 0.7%. The rose 1% and the was up 1.9%.

The three main indexes on Wall Street closed lower Monday, with the dropping over 200 points, or 0.6%, breaking a five-day winning streak, the fell marginally and the declined 0.4% after Fed chief Powell vowed Monday to take the “necessary steps” to curb inflation.

“If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so,” Powell said.

Last week’s meeting saw the benchmark interest rate rise by 25%. It was the first time since December 2018 that it had been increased.

Strong numbers from were also a big help in setting the tone. Nike (NYSE:), with the world’s biggest sportswear maker beating third-quarter revenue and profit expectations, helped by strong demand in North America. It also said that the manufacturing issues that affected sales during the last six months had now been resolved.

Tesla (NASDAQ: ) announced its European production center in Germany, earlier Tuesday. Alibaba (NYSE:) raised its share buyback program by $9 billion to $25 billion, the Chinese e-commerce giant’s largest ever repurchase plan.

Carnival, a cruise operator (NYSE:), reported a $1.89 billion loss for its fiscal first quarter. After the close bell, software giant Adobe (NASDAQ) will release its results.

The Russian military continues to bomb many cities in Ukraine, including Mariupol (Black Sea port). Investors should be aware of developments across Europe.

In a late Monday televised interview, President Volodymyr Zelesky stated that Ukraine will hold a referendum about the terms of any agreement it has with Russia.

Redbook Research’s numbers are part of Tuesday’s economic data slate.

Oil prices reversed an earlier drop on Tuesday and later fell back into the red while European Union governments continue to discuss joining the United States in sanctioning Russian oil in return for Moscow’s invasion of Ukraine.

The market was also rattled by attacks on Saudi Arabian oil facilities that were launched over the weekend by Iranian-aligned Houthis.

Futures were trading 0.9% less at $108.97 per barrel by 4:16 ET. The contract was down 0.5% to $115.03. On Monday, both contracts settled higher than 7%.

U.S. crude oils supply data are available from later in the day.

The price dropped 0.5% to $1920/oz.

This article was published originally at 7 AM ET, and has been updated.