Stocks closed higher on Wall Street Tuesday and oil prices eased as investors remained focused on the outlook for inflation.

The S&P 500 rose 1.1%, the Dow Jones Industrial Average rose 0.7% and the Nasdaq rose 2%. Banks helped drive the gains, along with technology and retailer stocks.

Energy stocks slipped as oil prices fell.

Bond yields continued to rise a day after Federal Reserve Chair Jerome Powell said the central bank was prepared to move more aggressively in raising interest rates in its fight against inflation, if it needed to.

The yield on the 10-year Treasury rose to 2.38%.