The Dow Jones Industrial Average ( ^DJI) led the way higher, gaining over 450 points, or about 1.1%. The S&P 500 ( ^GSPC) gained 0.5%, and tech-heavy Nasdaq Composite ( ^IXIC) pared earlier losses to finish just above the flat line.

"There were some warning signs from Target, but if you look at personal income and retail sales, they have been strong all year," said Peter Cardillo, chief market economist at Spartan Capital Securities, in an interview. "That suggests the consumer has buying power."

Nvidia helped pulled U.S. stock indexes higher on Tuesday after they stumbled in the morning on worries about escalations in the Russia-Ukraine war. The S&P 500 rose 0.4% after erasing an early drop of 0.