All three US stocks closed at their highest levels, led by Nvidia shares after the company announced a $100 billion investment in OpenAI.
Nvidia shares rose 3.9% after the company announced it would supply OpenAI with data center chips, boosting confidence in the prospects for artificial intelligence (AI).
Apple shares jumped 4.3% after its price target was raised due to strong demand for the iPhone 17. Tesla also rose 1.9%, while the technology sector in the S&P 500 led the way with a 1.7% gain.
The Dow Jones Industrial Average rose 0.14% to 46,381.54 points, the S&P 500 rose 0.44% to 6,693.75 points, and the technology-focused Nasdaq rose 0.70% to 22,788.98 points.
In other news, some Federal Reserve (Fed) officials have cast doubt on the need for additional rate cuts, even though the central bank last week lowered interest rates for the first time since December.
St. Louis Fed President Alberto Musalem and Atlanta Fed President Raphael Bostic said last week's quarter-point rate cut was appropriate to manage unemployment risks.
However, they stressed that reducing inflation remains a priority.
Meanwhile, Fed Governor Stephen Miran, who rejected the Fed's decision last week to cut rates by a quarter point, said a half-point cut would be more appropriate.
Investors are now worried about President Donald Trump's proposed new visa fees for foreign workers, which have drawn criticism from technology executives and others on social media.
Volume on US exchanges was worth $18.65 billion, compared with an average of $17.5 billion over the past 20 trading days.
