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Market Wrap for Tuesday, February 26: Stocks Rally Back From Steep Monday Losses

A day after the Dow fell more than 200 points and the VIX surged 35 percent, the U.S. stock market bounced back.Better than expected new home sales along with strongly rebounding consumer confidence helped spur risk appetite on the day. Investors also reacted to comments from Fed Chairman Ben Bernanke defending the central bank's bond buying stimulus program.The Dow led the way on Tuesday, notching a gain of better than 100 points.Major AveragesThe Dow Jones Industrial Average rose 117 points, or 0.85 percent, to 13,901.The S&P 500 was up 9 points, or 0.61 percent, to 1,497.The Nasdaq was the laggard on the session, but still added 13 points, or 0.43 percent, to 3,130.New Home SalesNew home sales were strongly higher in January, rising 15.6 percent from 378,000 in December to 437,000 in the most recent month. This came in way above consensus expectations of 383,000 and helped spark a stock market rally on Tuesday.Consumer ConfidenceThe market was also buoyed by a better than expected c...

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