NEW YORK (TheStreet) -- The Shanghai Composite dropped 5.2% and the Greece stock market plunged 12.8%, which weighed on the S&P 500 in the first half of Tuesday's trading session by over 1%.
However, the market recovered in the second half of the session, closing lower by just 0.02%. To Brian Kelly, founder of Brian Kelly Capital, that means global investors continue to put their capital to work in U.S. assets including stocks and bonds.
The bond rally seems likely to continue, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show. For now, the bond rally has been accompanied by a stock market rally, too. However, that relationship is likely to decouple in the future when equities sell off.
It's suspicious that the utility sector continues to rally since it is generally viewed as a defensive investment, said Steve Grasso, director of institutional sales at Stuart Frankel. He also pointed out that investors are rotating out of technology, and for the moment, into energy.
Tuesday's rebound in oil prices was important, according to Karen Finerman, president of Metropolitan Capital Advisors. When oil sold off hard in October it pulled the stock market down with it. If it can stabilize and move higher it should help stocks rally even further.
Adami added that over the past ten years, the Dow Jones Industrial Average has had a very high correlation to oil prices, with the exception of the past two months.
The U.S. recently reduced its oil demand outlook for 2015, albeit slightly, Kelly said. However, a reduction in demand could signal slower-than-expected economic growth, which would negatively impact GDP.
Fred Cannon, director of research and chief equity strategist at Keefe, Bruyette & Woods Global, said bank stocks seem to have gotten "a little ahead of themselves" in regards to valuation. Investors are already pricing in a rate hike in 2015. If that doesn't happen, EPS estimates could be too high by about 10%.