US stocks recovered on Tuesday, following a drop in the previous day. The major averages all ended on a firm note. The Dow saw some intraday volatility but ended higher with a gain of 126.13 points or 0.3 percent at 42,080.37. The S&P 500 closed at 5,751.13, gaining 55.19 points or 0.97 percent, while the Nasdaq ended higher by 259.01 points or 1.45 percent at 18,182.92.

Markets are now closely watching for clues about future US interest rate policy, as doubts persist regarding the Federal Reserve's plans for further rate cuts. The minutes of the Fed's September meeting are scheduled for release later on Wednesday, and several Fed officials are also set to speak. Meanwhile, Consumer price index inflation data, due on Thursday, is also likely to weigh on sentiments.