NEW YORK - US stocks closed higher on Tuesday, recovering from a shaky start to December trading.

The Dow Jones Industrial Average climbed 185.13 points, or 0.39 percent, to 47,474.46. The S&P 500 inched up 16.74 points, or 0.25 percent, to 6,829.37. The Nasdaq Composite advanced 137.75 points, or 0.59 percent, to 23,413.67. Both the Dow and the S&P 500 briefly dipped into negative territory during the session, while the Nasdaq approached the flatline before regaining momentum.

Eight of the 11 major S&P 500 sectors finished lower. Energy and materials led declines, slipping 1.28 percent and 0.82 percent, respectively. Industrials and technology posted the strongest gains, rising 0.87 percent and 0.84 percent, respectively.

Despite mixed performance in November, investors are looking for potential catalysts that could support a year-end rally. Market optimism has increased around the likelihood of a Federal Reserve interest rate cut on Dec 10, with traders now assigning roughly an 89 percent probability to such a move, which is significantly higher than expectations in mid-November, according to the CME FedWatch tool.

"Markets appear to have moved away from uncertainties surrounding Fed policy and the Dec 10 FOMC (Federal Open Market Committee) and focusing instead on better-than-expected earnings projections for the fourth quarter and calendar year 2026, in addition to looking beyond the economic soft patch we're currently experiencing to growth accelerating later next year," said Doug Beath, global equity strategist at Wells Fargo Investment Institute. "Seasonality also favors stocks in December, particularly after a weak November."

Meanwhile, the yield on the ten-year US Treasury bond held near 4.09 percent after jumping Monday from Friday's close of 4.01 percent.

In corporate news, Nvidia added 0.86 percent, extending Monday's gains after announcing an expanded partnership and a two-billion-dollar investment in Synopsys. Most members of the so-called Magnificent Seven rose modestly, except for Tesla, while Intel surged 8.65 percent.

Looking ahead, the S&P 500 averages a gain of more than 1 percent in December, according to the Stock Trader's Almanac. Strategists at BNP Paribas project the S&P 500 to finish next year at 7,500, supported by steady U.S. economic growth that will fuel corporate profit growth and avoid a significant weakening of the labor market.