US stocks jump on global rally, oil prices

US stocks traded higher in the morning session on Tuesday, as investors assessed oil prices rebound and a rally in global equities.

At midday, the Dow Jones Industrial Average soared 189.87 points, or 1.07 percent, to 17,895.78. The S&P 500 rose 19.97 points, or 0.97 percent, to 2,078.66. The Nasdaq Composite Index gained 39.25 points, or 0.83 percent, to 4,789.46.

Wall Street kept a close eye on oil prices Tuesday, as both U.S. oil and Brent crude traded higher in early trading. Energy sector rose more than 1 percent to lead all S&P 500 sectors higher.

Meanwhile, investors also digested a rally in global stocks. Tokyo shares soared Tuesday on the yen's retreat against the U.S. dollar as Japan's finance minister warned again that the government could intervene in the market if the yen continued to strengthen.

Chinese stocks closed higher on Tuesday, with the benchmark Shanghai Composite Index up 0.02 percent, at 2,832.59 points.

In corporate news, shares of Credit Suisse surged over 3 percent around midday Tuesday. The company reported pre-tax loss of 484 million Swiss francs in the first quarter 2016, but the numbers beat expectations.

U.S. stocks closed mixed after wavering in a tight range on Monday, as a weak nonfarm payroll report caused investors to revise down the likelihood of the U.S. Federal Reserve hiking rates in June.