What to watch, courtesy of Yahoo! Finance's Elizabeth Trotta:
World stocks and U.S. futures are rallying this morning and commodities are rebounding sharply from a recent sell-off on hopes for a European debt solution.
German Chancellor Angela Merkel said at an industry conference that Germany would do whatever it could to support Greece winning back confidence. Although Merkel still rejected the idea of Eurobonds and said Germany is "not available" for further stimulus programs.
Economic data will be on the light side, with the Case-Shiller home price index at 9 a.m. ET, and a reading on consumer confidence later in the morning.
The housing agency's inspector general said in a report Tuesday the FHFA did not properly check the settlement deals between Fannie and Freddie and lenders who sold them substandard mortgages.
9 a.m. Case-Shiller 20 city home price index (prior -4.52%, expected -4.5%)
10 a.m Consumer Confidence (prior 44.5, expected 46.6)