On Tuesday, the S&P 500 and the Nasdaq reached three-week highs as dovish remarks from Fed officials pushed Treasury yields to decline. Investors closely monitored the most recent events as Middle Eastern tensions continued to rise.

The Dow jones ticked up by 267.48 points, or 0.80%, at 33,872.13, the S&P 500 gained 47.13 points, or 1.09%, at 4,382.79, while Nasdaq advanced y 165.62 points, or 1.23%, at 13,649.86.

Raphael Bostic, president of the Atlanta Fed, responded to Monday's remarks by senior Fed officials by stating that the U.S. central bank does not require to hike interest rates any further and does not anticipate a recession.

According to traders' estimates, there is a roughly 88% and 74% chance, respectively, that interest rates won't change in November and December.

A number of Fed representatives are scheduled to speak during the day, including Board Governor Christopher Waller, Mary Daly, and Minneapolis' Neel Kashkari.

Despite energy and healthcare lagging, all 11 of the major S&P 500 sectors were edging higher, with consumer discretionary leading gains.

Despite a warning from Hamas terrorists to execute a captive for every home struck, Israel pounded the Gaza Strip with the strongest airstrikes in its 75-year battle with the Palestinians, levelling entire neighbourhoods.