U.S. stocks gains evaporated Tuesday as investors looked to a gathering of European leaders the next day, with concern about Europe overriding cheer that came with upbeat housing data.
Stocks sharply higher as Wall Street bounces back from the worst week for U.S. equities this year. S&P posts its best day in two months and Nasdaq sees its biggest gain in five months.
Treasury prices on most maturities rise, nudging yields on some maturities toward their all-time lows, though a lack of negative news allows riskier assets to recover.
The U.S. trade deficit is expected to widen in March close to its highest level in the past year but economists see a sunnier outlook over the longer term.
European bourses turn sharply lower with investors in a risk-averse mood amid jitters over what will befall Greece. Bank shares are particularly weak in Paris.
European markets stage a broad advance with resource and banking shares leading the gains, amid hopes that China and the euro zone will take action to boost economic growth.
Most European stock markets partly recover from last week's steep losses on Monday, though pressure remains on Spanish stocks as investors fret about the country's banks and economic situation.