US stocks closed higher with the Nasdaq Composite index recording its highest closing for two consecutive days.
The rise was also driven by a surge in technology stocks including Apple as investors remained optimistic about the possibility of an interest rate cut.
Apple shares jumped 4.2% and are up 13.3% for the week, marking their biggest weekly gain since 2020.
President Donald Trump announced that Apple will add $100 billion in investment in the US, bringing the company's total commitment to $600 billion over the next four years.
The Dow Jones Industrial Average rose 0.47% to 206.97 points, the S&P 500 added 0.78% to 49.45 points, while the tech-focused Nasdaq rose 0.98% to 207.32 points.
In other developments, weak recent economic data has increased expectations for interest rate cuts as investors also assess Trump's nominee for interim Federal Reserve (Fed) governor.
According to CME's FedWatch, the probability of a rate cut of at least 25 basis points at the September meeting rose to 89.4% from 80.3% last week with futures predicting at least two cuts by the end of the year.
Meanwhile, inflation data is expected to be a key test of the US stock market rally this week with some investors expecting a possible price correction.
The US monthly consumer price index (CPI) report is due on Tuesday.
Investors are also monitoring US-India trade relations after New Delhi postponed purchases of new weapons and aircraft from Washington following Trump's decision last week to raise tariffs on Indian exports to 50%.
Trading volume on US exchanges recorded $16.18 billion compared to an average of $18.27 billion over the full 20 trading days.
