Stocks rose on Tuesday as investors returned from a long holiday weekend, as Wall Street works to recover from the S&P 500's worst week since March 2020. The Dow Jones Industrial Average rose over 600 points, while the S&P 500 and Nasdaq Composite climbed about 2.5% higher.

The session's recovery came amid a recent downward trend of heavy selling as market participants are concerned over the health of the U.S. economy. The S&P 500 fell into its first bear market since the start of the coronavirus pandemic last week, and the market's rout deepened further after the Federal Reserve issued a larger-than-normal 75 basis point interest rate hike on Wednesday and signalled more tightening to come to combat red hot inflation.

Federal Reserve Chair Jerome Powell is scheduled to deliver his semi-annual address before Congress later this week, where he is likely to be questioned by lawmakers about the central bank's actions to hamper rising inflation and the economy's recession risk.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  ): +2.45% or +89.95 points to 3,764.79

Dow Jones Industrial Average (DIA  ): +2.15% or +641.47 points to 30,530.25

Nasdaq Composite Index (QQQ  ): +2.51% or +270.95 points to 11,069.30

Existing homes sales dropped in May:

Existing home sales in the United States fell in May, marking the weakest reading since June 2020, as rising mortgage rates impacted affordability and pushed potential buyers out of the housing market.

Last month's sales dropped 3.4% to a seasonally adjusted annualized rate of 5.41 million units, according to the National Association of Realtors (NAR) report published Tuesday. On an annual basis, sales were 8.6% lower. The reading it's based on closings during the month, representing contracts most likely signed in March and April--when the average rate on a 30-year fixed mortgage rose to about 4% to 5.5%.

"I do anticipate a further decline in home sales," said Lawrence Yun, chief economist at NAR, in a press statement. "The impact of higher mortgage rates are not yet fully reflected in the data."

Kellogg to split company into three separate public companies:

Kellogg (K  ) announced Tuesday that it plans to break-up its business into three independent public companies--separating its brands into distinct snacking, cereal and plant-based businesses. The spin-offs are expected to be completed by the end of 2023.

"These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities," CEO Steve Cahillane said in a press statement on Tuesday.

The brand's plant-based division and North American cereal business combined accounted for about 20% of revenue last year. The remaining business includes the companies, snack, noodles, international cereal and North American frozen breakfast brands. In addition to the split, Kellogg is also exploring the potential sale of its plant-based business.

Names for the new companies have yet to be decided, and proposed management teams for the two spin-offs will be announced by the first quarter of 2023. Cahillane will remain as head of the global snaking company.