U.S. stocks extend gains after Presidents' Day

U.S. stocks traded higher in the morning session Tuesday after markets were closed Monday for Presidents' Day, as a rebound across the global equity market boosted investor sentiment.

By midday, the Dow Jones Industrial Average added 154.60 points, or 0.97 percent, to 16,128.44. The S&P 500 gained 21.73 points, or 1.17 percent, at 1,886.51. The Nasdaq Composite Index jumped 74.23 points, or 1.71 percent, to 4,411.75.

Overseas stock markets rebounded strongly during the long weekend. Chinese shares surged on Tuesday to regain the 2,800-point mark on official reassurance about the steadiness of the yuan. The benchmark Shanghai Composite Index leapt 3.29 percent to close at 2,836.57.

Tokyo stocks reversed early losses to close higher Tuesday, after spiking over 7 percent on Monday, as investors were encouraged by a weaker yen and a recovery in oil prices.

European shares fluctuated Tuesday after the previous day's surge, as European Central Bank President Mario Draghi hinted at further monetary policy easing.

Oil prices were also in focus, which pared early gains to trade lower around midday Tuesday, amid hopes that major oil producers would agree on cutting oil production at a meeting in Doha, Qatar.

In the United States, the February 2016 Empire State Manufacturing Survey indicates business activity continued to decline for New York manufacturers. The headline general business conditions index edged higher, but remained firmly in negative territory.

On Friday, U.S. stocks posted solid gains as Wall Street cheered over spiking oil prices. Enditem