U.S. stocks rose Tuesday after a consumer-spending report raised hopes for the holiday-sales season.

The $S&P 500 index(.SPX.US)$ rose 18.10 points, or 0.4%, to 4700.90, reversing Monday's declines and leaving it just short of last week's closing high. The $Dow Jones Industrial Average(.DJI.US)$, which fell three of five days last week, added 54.77 points, or 0.2%, to 36142.22. The technology-focused $Nasdaq Composite Index(.IXIC.US)$ climbed 120.01 points, or 0.8%, to 15973.86.

U.S. equities have wavered over the past week after a strong run this year. The Dow has jumped 18% this year, the S&P 500 is up 25% and the Nasdaq has risen 24%. Stocks have been boosted by aggressive central-bank support, though many central banks are starting to pare back their stimulus programs. The Federal Reserve has started to "taper" its bond-buying program and the Bank of England could raise interest rates as soon as next month.

Worries about inflation also have sapped markets of the momentum that propelled stocks to records earlier in the fall. Higher rates could knock stocks and other riskier assets that have benefited from 18 months of monetary stimulus.

We're moving toward a period now of maybe a bit more volatility,

-Frank Øland Winther, global chief strategist at Danske Bank

Retail sales rose 1.7% in October, the Commerce Department said, suggesting shoppers weren't put off by rising inflation. Walmart and Home Depot reported higher sales.

$Home Depot(HD.US)$ shares rose $21.25, or 5.7%, to $392.33 after the retailer reported that same-store sales increased in August through October, building on strong growth earlier this year. $Walmart(WMT.US)$ shares fell $3.74, or about 2.5%, to $143.17 even though the retailer also reported another quarter of higher sales.

But the retail numbers don't paint the full picture, said Peter Boockvar, the chief investment officer at Bleakley Advisory Group. Since March, inflation has been increasing at a faster clip than retail sales and wages. That means that in real terms, both have been falling. "It's hard to sustain retail sales on a volume basis when real wages are down," he said.

Government bond yields rose, extending a recent advance. Yields on benchmark 10-year Treasury notes rose to 1.632% Tuesday from 1.621% Monday. Yields move in the opposite direction of prices.

Cryptocurrencies retreated, a sign that riskier assets could be losing momentum. Bitcoin briefly fell below $59,000, its lowest price in November.

The decline hit crypto-related stocks. Software company $MicroStrategy(MSTR.US)$ fell $42.98, or 5.4%, to $752.02 and mining company $Riot Blockchain(RIOT.US)$ fell $5.19, or 12%, to $36.90. Bitcoin wallet provider $Coinbase(COIN.US)$ slipped $3.24, or 0.9%, to $342.12.

Overseas stock markets were mixed. Gains for telecom and auto stocks pushed the pan-European Stoxx Europe 600 up 0.2% to a record close. $Hang Seng Index(800000.HK)$ rose 1.3%, Japan's  edged up 0.1% and China's Shanghai Composite Index fell 0.3%.

Corrections & Amplifications

Ten-year Treasury yields experienced their biggest three-day rise since November 2020 through Monday. An earlier version of this article incorrectly said yields experienced their biggest three-month rise since last November. (Corrected on Nov. 16.)