The S&P 500 rallied 1.2% to finish at 5,782.76, and the Nasdaq shot up 1.4% to 18,439.17. Most components of the so-called Trump trade continued to weaken after retreating on Monday. The greenback fell again on Tuesday, with the U.S. Dollar Index down 0.4%.

"We have had some re-pricing in yields ... which comes from the fact that economic data has been coming better than expected. Yields are definitely positioned to take a breather, but that catalyst for that to go in the other direction was triggered by investors' expectations of presidential election results,