Wall Street rebounds on Bernanke's defense for QE (2)

The CBOE Volatility Index, broadly considered a gauge of fear in the market, sank 11.2 percent to close at 16.87 on Tuesday.

Tuesday's gains followed the biggest slump on Monday since last November for the Dow and the S&P 500 as uncertainties over the Italian election, which may disrupt the country's fiscal reform and reignite the eurozone debt crisis, weighed on the market.

The U.S. dollar traded mixed against major currencies on Tuesday. It continued strengthening versus the euro due to gridlock of Italy's parliament election and favorable U.S. economic data.

Light, sweet crude for April delivery lost 0.48 dollars, or 0. 52 percent, to settle at 92.63 dollars a barrel on the New York Mercantile Exchange on Tuesday, dampened by worries over the eurozone economy due to Italy's election.

Brent crude for April delivery fell 1.73 dollars, or 1.51 percent, to close at 112.71 dollars a barrel.

Gold future for April delivery on the COMEX of the New York Mercantile Exchange on Tuesday sharply rallied 28.9 dollars, or 1. 82 percent, to settle at 1,615.5 dollars per ounce.