Dow closes 750 points higher as stocks surge, small caps see biggest advance in 18 months

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U.S. stocks rose sharply Tuesday, with the main benchmarks seeing their strongest advance in a month, while small caps recorded their best performance in more than 18 months.

How stocks traded

On Monday, the Dow Jones Industrial Average fell 216 points, or 0.7%, erasing an earlier gain of more than 350 points. The S&P 500 and Nasdaq Composite each fell 0.8%. The S&P 500 has fallen six of the last seven sessions and has shed 19.6% year-to-date.

What drove markets

Deepening…