The Dow Jones industrial average (INDU) rose 8 points, or 0.1%. The S&P 500 (SPX) lost 2 points, or 0.2%. The Nasdaq Composite (COMP) dropped 23 points, or 0.9%.
Analysts and traders said Tuesday's change of direction signals ongoing wariness and skepticism over the market's direction. And the three sectors that were faring the best -- utilities, telecommunications, and health care -- are typically considered the least risky stocks.
"Even though we're seeing the markets up, it's really a relief rally," said Jeremy Zirin, chief US equity strategist at UBS. "Investors aren't moving into risk-on trades."
Part of Tuesday's relief stemmed from signs that European leaders were more likely to take positive action on Greece's debt crisis and forestall a default. Investors breathed a sigh of relief as the island nation made a coupon payment on its sovereign debt.
The Greek finance ministry was holding a second day of talks said with officials from the European Commission, the International Monetary Fund and the European Central Bank. Monday, the finance ministry called the discussions "productive."
"Every trader in the U.S. is keeping at least one eye on developments in Greece," said Michael James, senior equity trader at Wedbush Morgan Securities. "The outlook and market reaction in Europe continues to drive everything here."
In addition to watching Greece, investors are waiting for "the FOMC announcement tomorrow, which will likely means some stimulus: Operation Twist is what they are calling it," said Peter Cardillo, chief market economist at Rockwell Global Capital.
The dollar edged down slightly against the euro, the British pound and the Japanese yen.
Oil for October delivery, whose contract expires Tuesday, gained $1.19 to $86.89 a barrel. The most active contract is November, which rose $1.26 to $87.08.
Gold futures for December delivery added $29.30 to $1,808.20 an ounce.
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