US stocks rose more than 10 percent on Tuesday, with the Dow Jones Industrial Average achieving its second-biggest point gain ever in history.

The Dow jumped nearly 900 points, or 10.88 percent, to just over 9,065 points, whereas the S and P 500 shot up 10.79 percent to close at over 940.

The surge came as investors scooped up beaten-down shares, buoyed by their belief that the Federal Reserve and other central banks will cut interest rates further.

The Fed is expected to cut lending rates at a two-day policy meeting which ends on Wednesday.

It's also expected to signal a willingness to lower borrowing costs again if needed, especially with inflation pressures fading fast.

Many investors also believe the Bank of Japan will make a similar move to cut interest rates.