The 30-issue Dow Jones Industrial Average, which dropped 79.89 points to end at a new 12-year low Monday, gained 253.44 points to stand at 6,800.40 at 11:45 a.m.

The tech-heavy Nasdaq Composite Index, which lost 25.21 points the previous day, rose 61.64 points to stand at 1,330.28.

In a letter sent to employees Monday, Citigroup CEO Vikram Pandit said the bank sustained a profit during the first two months of the year, according to news media.

The news sparked buy orders, especially financial stocks, said a market analyst.

The market was also buoyed by Federal Reserve Board Chairman Ben Bernanke's comments in support of overhauling the U.S. financial regulatory system.

"We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components," Bernanke said in a speech, citing the need for more rigorous oversight of banks.