Dow, S&P bounce back from plunge

Stocks closed broadly higher on Tuesday as Wall Street regained its footing a day after the market had its biggest decline in a year.

The bounce pushed the Dow Jones Industrial Average more than 300 points higher and snapped a six-day losing streak for the market, though the benchmark S&P 500 recouped only a little more than a third of the losses from Monday.

China's decision to stabilize its currency put investors in a buying mood Tuesday. News that China allowed its currency to depreciate against the dollar to its lowest level in 11 years sparked Monday's steep stock market sell-off.

The move helped allay some of the market's jitters over the escalating dispute between the world's largest economies at a time when investors are anxious about falling U.S. corporate profits and a global economy that's showing signs of slowing.

The S&P 500 index rose 37.03 points, or 1.3%, to 2,881.77. The index dropped 3% on Monday, its worst loss since December.

The Dow climbed 311.78 points, or 1.2%, to 26,029.52. The Nasdaq composite gained 107.23 points, or 1.4%, to 7,833.27. The Russell 2000 index of smaller companies picked up 14.67 points, or 1%, to 1,502.09.

Technology stocks, which bore the brunt of Monday's sell-off, accounted for a big share of the market's gains on Tuesday.

Apple and Microsoft rose 1.9%. The companies get significant revenue from China and have been highly sensitive to swings in the ongoing trade dispute.

Financial companies also helped lift the market. Wells Fargo gained 1.7% and Bank of America rose 1.2%.