NEW YORK ( TheStreet) -- It was another roller-coaster day for the markets, thanks once again to a country with an economy the size of Connecticut's.
After plunging in the morning, stocks rebounded in the early afternoon and closed higher, mainly on hopes that Greece comes to its senses and proposes a suitable debt deal to its creditors as soon as Wednesday.
The S&P 500 gained 0.61%, after turning negative for the year at one point Tuesday, while the Dow Jones Industrial Average added 0.538% and the Nasdaq rose 0.011%.
Greece Prime Minister Alexis Tsipras, armed with his "no" vote victory in Sunday's referendum, met with European leaders in Brussels but didn't submit a new proposal, according to reports. Reuters reported, however, that Greece has proposed a short-term solution to allow the debt-laden nation to survive through the month.
Eurogroup President Jeroen Dijsselbloem told reporters in Brussels there is "a great sense of urgency" to come to a resolution and he is waiting to hear new proposals from Greek officials.
Greek banks have days of liquidity left. Providing solvency to Greece's system is top of mind during Tuesday's discussions. Plus, CNBC said that all 28 members of the European Union are set to meet on Sunday to discuss Greece's liquidity crisis.
"The pressure is on, to say the least, for Athens to present a viable plan to her creditors," wrote Stifel Fixed Income chief economist Lindsey Piegza in a note. "Greek banks will remain closed until at least Wednesday with capital controls still in place for a second week."
The euro lost 0.5% against the dollar. Crude prices rose 0.69% to $52.89 a barrel. This follow's Monday's 7.7% slide. Nuclear talks with Iran, which have weighed on oil prices, have been extended once again until July 10.
The Shanghai Composite Index declined 1.29% on Tuesday and has declined 30% since its high in mid-June; the Shenzhen fell 5.3%. Reports suggested Chinese companies are suspending trades after actions taken by Chinese finance officials last weekend have yet to stop the precipitous downward swing across the country.
E-commerce giant Alibaba (BABA) which trades on the New York Stock Exchange but whose business is mostly in China, fell 0.9%, after reaching a record low during the session.
"China is in uncharted territory with what it is trying to do to support its market," said Ian Winer, head of equity trading at Wedbush Securities. "The worst part is it is still not working, which has to have an impact on psychology of their people and therefore could ripple through companies that get a chunk of end demand in China. Alibaba is getting caught up in that and in theory the big question mark is will the Chinese consumer change their behavior and what does that mean for the company?"
The International Monetary Fund said Tuesday the Federal Reserve should delay its looming rate hike until inflation strengthens. It sees the U.S. economy growing by 2.5% for 2015.
Shake Shack (SHAK) was downgraded by Morgan Stanley to "underweight" from "equal weight," and said the stock was overvalued. Shares fell 7.1%.
Netflix (NFLX - Get Report) shares lost 0.7%. The analysts at Raymond James raised the stock's price target to $730 from $585 on the heels of better content.
Shares of Advanced Micro Devices (AMD) fell 15.8% after it said second-quarter revenue will drop 8%, compared to first quarter, on the heels of tepid personal computer sales.
Horizon Pharma (HZNP) offered to buy Depomed (DEPO) for $1.75 billion. Shares of Dublin-based Horizon Pharma fell 2.1%. The deal is viewed as an inversion, where a U.S. company relocates its headquarters to a lower tax jurisdiction.
Shares of Plug Power (PLUG - Get Report) soared 15% after the company maintained its revenue forecast of $100 million for fiscal 2015.