US stocks closed higher, led by gains in Nvidia and Eli Lilly.
Nvidia shares rose 1.1% ahead of its quarterly report on Thursday at 5am Malaysia time (MYT), which will test the resilience of the world's most valuable company in the face of trade tensions between the US and China.
Eli Lilly shares jumped 6% after announcing that its experimental pill successfully reduced the weight of diabetic patients by 10.5%.
The S&P 500 index rose 0.41% to 6,465.94 points, the Dow Jones added 0.30% to 45,418.07 points, while the technology-focused Nasdaq rose 0.44% to 21,544.27 points.
In other news, President Donald Trump on Monday announced the firing of Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, raising concerns about the central bank's independence from political influence.
In addition, despite persistently high inflation, investors are still expecting a 25-basis-point interest rate cut at the Fed's September policy meeting.
That expectation has been supported by a dovish tone from Fed Chairman Jerome Powell, weak labor market data and a change in the central bank's leadership.
Morgan Stanley became the latest broker to predict a rate cut in September, but upcoming inflation and jobs data are likely to weigh on investor expectations.
Meanwhile, Advanced Micro Devices shares rose 2% after Truist Securities upgraded the chipmaker's rating to "buy" from "hold."
EchoStar shares surged 70% to a record high after AT&T agreed to buy certain wireless spectrum licenses from the satellite company for about $23 billion.
Trading volume on the US exchange was $15.7 billion, compared with an average of $16.9 billion over the full 20 trading days.
