Stocks rose Tuesday, with gains accelerating into the final hour of trading, as investors were encouraged by strong earnings reports and the potential for smaller interest rate hikes from the Federal Reserve. The Dow Jones Industrial Average jumped 400 points, while the S&P 500 and Nasdaq Composite each climbed 1.3% higher.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): +1.36% or +53.64 points to 4,003.58

Dow Jones Industrial Average (DIA  ): +1.18% or +397.82 points to 34,098.10

Nasdaq Composite Index (QQQ  ): +1.36% or +149.90 points to 11,174.41

Corporate earnings were a major driver of market moves on Tuesday. Best Buy (BBY  ) rose over 12% after the retailer raised its 2023 fiscal outlook after delivering an earnings beat. Clothing retailers Abercrombie & fitch and American Eagle Outfitters also rose over 20% and 18%, respectively, on their own earnings beats.

Meanwhile, shares of Zoom Video Communications (ZM  ) slipped 3.9% after the video conferencing platform cut its annual revenue outlook and forecasted challenges ahead due to waning demand for online meetings. Dollar Tree (DLTR  ) also fell 7% after reporting a lower-than-expected outlook.

Market participants also paid attention to some Fedspeak on Tuesday for more clues on the central bank's policy heading into the new year. Federal Reserve Bank of Cleveland President Loretta Mester said Tuesday restoring price stability remains the central bank's top priority.

"We're committed to using our tools to put inflation on a sustainable downward trajectory to 2%," she said at an event hosted by her bank Tuesday.

Elsewhere, COVID fears have returned to Wall Street as increased cases in China prompted officials to reinstate restrictions to curb the spread of the virus. China had begun to ease some of its "Zero-COVID" measures about a week ago.

Looking ahead, market participants are watching for earnings reports from HP (HP  ) and Nordstrom (JWN  ) after closing bell, as well as minutes from the Federal Open Market Committee's November meeting due out Wednesday afternoon. Economic reports for Wednesday also include data on first-time unemployment claims and purchasing manager index numbers.

Wall Street will be closed on Thursday for the U.S. Thanksgiving holiday and will close at 1 p.m. on Friday.