Oil surged more than 6 percent Monday, and helped boost the stock market as the S&P energy sector jumped 1.8 percent. The U.S. dollar index started out the day lower, and was a catalyst for the stock market's gains, though it edged higher and ended the day barely changed.

"These are the two catalysts that are going to be with us, and we're not getting any real news on the economic front," said Art Hogan, chief market strategist at Wunderlich Securities. "What the dollar's representing us with now is more stability than anything." He said the euro-dollar is now in a range of $1.06 to $1.10.

The rising dollar has been negative for stocks because it can put a dent in the earnings of multinationals. The dollar and falling oil prices have both been major factors behind the near 3 percent decline expected in earnings this quarter, the first drop in six years.

Oil Rally Encouraging

The collapse of oil prices this year has also held back stock market gains, and Monday's rally encouraged some traders who have been hoping to see a bottom soon in the price of crude. West Texas Intermediate futures for May delivery jumped 6.1 percent to $52.14 per barrel.

Stocks rallied Monday on the view that weak economic data could keep the Fed on hold longer, even stock futures initially fell sharply in reaction to Friday's weak jobs report.

Oil rose in its biggest one-day gain since February on reports that supplies fell in Cushing, Okla., the physical storage hub for Nymex futures. Speculation that Cushing facilities would soon be full, sending more crude back onto the market has weighed on prices recently. Government data on supplies will be released Wednesday morning.