By Francesca Fontana and Ben St. Clair 

U.S. stocks climbed Tuesday, halting four-session losing streaks for the Dow Jones Industrial Average and S&P 500, as concerns over the Turkish lira's recent slide appeared to ease.

The Dow industrials added 112.22 points, or 0.4%, to 25299.92, while the S&P 500 gained 18.03 points, or 0.6%, to 2839.96. The technology-heavy Nasdaq Composite rose 51.19, or 0.7%, to 7870.89.

Stocks have been under pressure in recent sessions, as investors worried that Turkey's economic crisis could spread to other emerging markets. But Tuesday's gains show that investors are reassessing the risk of spillover, said Christopher Harvey, head of equity strategy at Wells Fargo Securities.

"It's a rebound from some of the contagion [fears], as cooler heads prevail," Mr. Harvey said.

The Turkish lira rose 8.3% against the dollar after plunging as much as 10% in the previous session. Turkey's central bank on Monday introduced measures to boost liquidity in the market, but investors remain concerned that the bank isn't independent from President Recep Tayyip Erdogan. He has blamed the U.S. and social media for the country's economic troubles.

Barry Bannister, head of institutional equity strategy at Stifel Nicolaus, said the financial predicament in Turkey leaves the U.S. Federal Reserve "between a rock and a hard place."

"They must pursue a policy of normalizing the cost of money," Mr. Bannister said. "But in so doing, they wreak havoc in emerging markets."

Meanwhile, a measure of expected stock swings dubbed the Cboe Volatility Index edged lower after closing Monday at its highest level in more than two months.

In the U.S., many investors continued to focus on what has been a strong corporate-earnings season. With results in from 91% of S&P 500 companies, firms are on track to post earnings growth of 25% from the year-earlier period, according to FactSet. Several retailers, including Macy's, Walmart, J.C. Penney and Nordstrom, are on tap to report results later this week.

Home Depot and Tapestry reported strong earnings before the market opened. The home-improvement company reported better-than-expected second-quarter results and raised its outlook for the rest of the year. But its shares slipped $1.04, or 0.5%, to $193.10 as tariffs caused a slight increase to the company's cost of goods.

Tapestry, the parent company of luxury brands such as Coach, reported quarterly earnings and sales that beat analysts' expectations. The company said its sales were aided by the contribution of Kate Spade, which Tapestry acquired last year. Its shares rose 5.70, or 12%, to 53.16.

"Retailers seem to be well-positioned for recovery," Mr. Bannister of Stifel Nicolaus said.

The consumer-discretionary sector of the S&P 500, which is home to many retailers, gained 1% and is the best-performing group in the index this year behind technology.

Overseas, the Stoxx Europe 600 rose less than 0.1%, while Asian stocks were mixed.

Upbeat economic data gave European investors reason for optimism, with Germany reporting better-than-expected economic growth for the second quarter and the European Union's statistics agency raising its growth estimate for the bloc.

In Asia, Chinese markets were an exception to the generally buoyant mood after data showed fixed-asset investment slowing to a nearly two-decade low for the first seven months of the year. Retail sales and value-added industrial output also fell below expectations.

The Shanghai Composite Index slipped 0.2%, and Hong Kong's Hang Seng fell 0.7%. Elsewhere in Asia, Japan's Nikkei Stock Average rose 2.3%, more than retracing Monday's losses, and South Korea's Kospi added 0.5%.

The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was little changed, falling less than 0.1%.

Elsewhere, yields on 10-year U.S. Treasurys rose to 2.893% from 2.877% Tuesday. Yields move inversely to prices.

In commodities, U.S. crude oil slipped 0.2% to $67.04 a barrel, and gold edged up 0.1% to $1,193.00 an ounce.

(END) Dow Jones Newswires

August 14, 2018 18:42 ET (22:42 GMT)

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