Shares of banks and other financial institutions rose as risk appetite rebounded across global markets.

"I think the biggest thing was the probability of a rate hike going down, if you look at what happened during the last week with employment and inflation data," said JJ Kinahan, senior vice president at CBOE Global Markets.

Cooler inflation readings for July have not changed the rate policy calculus for Beth Hammack, president of the Federal Reserve Bank of Cleveland, who advocated swift Fed action to combat rising prices.