Following President Joe Biden assurances that the experienced inflation is expected to be temporary, Wall Street closed higher on Tuesday regaining lost grounds from the day before when fears surrounding price increase and the surge of Delta COVID-19 variant cases dragged the market to the worst session of the year.

Although the US economy is still grappling with a rocky recovery, those fears seemed to fly out of the window in Tuesday's broadly positive trading charts.

While the benchmark Dow Jones Industrial Average closed 1.6% higher at 34,511.99, the tech-rich Nasdaq Composite Index also gained 1.6% to finish at 14,498.87.

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The broad-based S&P 500 climbed 1.5% to hit 4,323.06.

With the newest coronavirus strain continuing to spread and inflation remaining a concern, Peter Boockvar, a chief investment officer at Bleakley Advisory Group, said it was unclear what led equities to rebound, other than investors going to purchase shares at cheaper prices.

"I can't explain why we're freaked out about Delta one day and don't care the next," he said, according to AFP inputs.

Gains among equities were widespread, with companies in the travel industry that would benefit from a return to normalcy performing well.

Furthermore, Delta Air Lines gained 5.5%, American Airlines 8.4% and United Airlines 6.6% prior to reporting another quarterly loss but predicting profits returning in the second half of the year.

Computer hardware giants IBM finished 1.5% higher after reporting higher revenues for the second quarter in a row in results that topped analyst expectations.

Among other tech firms, Apple gained 2.6%, and Microsoft rose 0.8%.

Banks gained as bond yields rose slightly, with Bank of America closing 2.1% higher, Citigroup rising 1.9% and Wells Fargo finishing with a 4.2% increase.

Meanwhile, shares of streaming giant Netflix slipped some three percent in after-market trades that followed the release of the earnings figures.

The global streaming leader said that it ended the second quarter with 209 million paid subscribers and revenue of $7.3 billion, some 19% higher than the same period a year earlier.