The Dow finished up 0.3 percent at 18,923.06 and the broader S&P 500 gained 0.75 percent to settle at 2,180.39.
It was a solid day on the commodity front, too, as crude oil prices popped on production cut speculation, and gold snapped its losing streak.
The S&P technology sector, which had fallen about 3 per cent since the election, rose 1.07 per cent.
Oil prices rose around 3.2 percent on Tuesday and are likely to buoy sentiment on Wall Street.
There also was a temporary respite in what has been a rout in US government bonds, suggesting that investors are reassessing their positions after a sharp swing in the wake of Republican Donald Trump's surprise election win. Investors will keep an eye on economic data due on Tuesday as well as fresh clues regarding President-elect Donald Trump's policies and key appointments to his administration.
The risk of faster domestic inflation and wider budget deficits if Trump goes on a spending binge sent yields on U.S. Treasury and other benchmark global bonds higher. However, "if he starts going off the deep end, whether on foreign policy or something else, then that could be bad for the market". The Nasdaq Composite added 0.5 per cent or 28.32 points, ending at 5,237.11, trimming losses seen on Thursday. Five of the index's 10 main groups were higher.
Eight of the 11 major S&P sectors were higher, with the energy index's 1.65 per cent rise leading the advancers.
USA retail sales rose more than expected in October as households bought motor vehicles and a range of other goods.
Fed Governor Daniel Tarullo, Fed Vice Chair Stanley Fischer, and Dallas Fed President Rob Kaplan are also set to speak later on Tuesday.
San Francisco Fed President John Williams continued to endorse another rate hike in 2016 during his keynote address at the Federal Home Loan Bank's member conference.
Home Depot fell 2.6 per cent to $124.40 after the No. 1 USA home improvement chain reported strong third-quarter results but kept its full-year sales forecast, implying a weaker-than-expected fourth quarter.
American Airlines AAL.O , Delta Air Lines DAL.N , Southwest Airlines LUV.N , and United Continental Holdings UAL.N were up between 3.1 percent and 4.2 percent, a day after Warren Buffett's Berkshire Hathaway BRKa.N said it had bought shares in the airlines. The stock was the biggest drag on the Dow.Advancing issues outnumbered decliners on the NYSE by 1,855 to 1,064.