A two-day selloff seemed a distant memory on Tuesday, June 13, as a quick rebound on Wall Street brought markets back into record-breaking territory.

The S&P 500 was up 0.45%, the Dow Jones Industrial Average gained 0.44%, and the Nasdaq rose 0.74%. The Dow and S&P 500 both closed at records. 

Banks were outperforming markets on the prospect of an interest rate hike on Wednesday, June 14. Goldman Sachs Group Inc. (GS) led the Dow higher, while Citigroup Inc. (C) , Wells Fargo & Co. (WFC) , Bank of America (BAC) , and JPMorgan (JPM) sported healthy gains. The Financial Select Sector SPDR ETF (XLF) increased 0.53%.

Citigroup and Wells Fargo are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells C or WFC? Learn more now.

Markets expect few surprises there at the Federal Reserve's June meeting. An interest rate hike in June has been widely expected since Fed commentary in recent weeks suggested there were more hawks than doves. Members have pointed to a tightening job market, the risk of being behind the curve on inflation, and a generally healthy economic recovery.

The Federal Open Market Committee, the monetary policy arm of the central bank, will make an announcement on interest rates on Wednesday. Wall Street is incredibly confident in a rate hike -- CME Group fed funds futures have priced in a more than 99% chance of a 25-basis-point increase. Should the Fed raise rates, it will be the second of three expected hikes this year.

The Fed will also release updated economic growth and rate hike forecasts, while Fed Chair Janet Yellen will hold a press conference mid-afternoon Wednesday. The central bank could also outline how and when it will begin reducing its $4.5 trillion balance sheet. 

"The U.S. economy can easily take this week's hike in its stride," said James Athey, senior investment Manager at Aberdeen Asset Management. ""The debate is really about what happens next. Inflation has softened a little lately and some are saying that the Fed should pause or cease this tightening cycle after this week as a result. That would be a mistake and the Fed should press on."

Benchmark indexes, the Nasdaq in particular, had been under pressure over the past two days after the tech sector fell from recent gains and dragged overall markets down with it. The sudden selloff was partially tied to a note from Goldman Sachs that cautioned investors not to think of the sector as a safe haven. The Nasdaq fell 2.3% over the previous two sessions. 

The FAANG stocks --Facebook Inc. (FB) , Apple Inc. (AAPL) , Amazon Inc. (AMZN) , Netflix Inc. (NFLX) , and Alphabet Inc. (GOOGL) (formerly Google) -- were among the hardest hit in recent days after significantly contributing to gains this year. Those stocks have accounted for two-fifths of the S&P 500's gains this year, said John Stoltzfus, chief investment strategist at Oppenheimer. That's "reason enough we'd think for some investors to take a little money off the table in the tech space," he wrote in a note.

FAANG stocks rebounded on Tuesday, driving gains across the tech space. The Technology Select Sector SPDR ETF (XLK) climbed 0.68%. 

Apple, Facebook, and Alphabet are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL, FB or GOOGL? Learn more now.

A market correction will eventually come, but this selloff wasn't it, argued James "Rev Shark" Deporre over on our premium site for investors, Real Money. Get his insights with a free trial subscription.

Producer prices remained flat in May, according to the Bureau of Labor Statistics, meeting analysts' expectations. Core producer prices, which excludes food and energy, declined by 0.1% last month. Prices over the last 12 months rose 2.4%, or 2.1% when excluding food and energy. 

Crude oil production among the Organization of the Petroleum Exporting Countries rose in May, the oil cartel said Tuesday. Overall OPEC production increased 1%, driven by increases in output in Libya, Nigeria and Iraq. The increases from Libya and Nigeria had been expected after disruptions to operations at their oilfields in recent months. Iraq, however, was a surprise. The country increased production by around 44,000 barrels to more than 4.4 million barrels a day. 

Saudi Arabia will cut its oil exports to the U.S. in a continued effort to reduce a global supply glut cramping prices, The Wall Street Journal reported. State-owned Saudi Arabian Oil Co. will reduce U.S. exports to about 1 million bpd in June, then 850,000 bpd in July. That's the lowest level since 1988, according to EIA data. 

West Texas Intermediate crude added 0.8% to $46.46 a barrel on Tuesday. Crude has climbed for three straight sessions. 
 

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