Wall Street closed higher, driven by significant gains in shares of Nvidia, Palantir and several major companies in the artificial intelligence (AI) sector.
Heavyweight technology stocks rebounded after recording losses earlier.
Last week, the S&P 500 technology sector index fell by 4.2%.
Shares of the world's most valuable company, Nvidia, rose 5.8%. Shares of AI data analysis firm Palantir jumped 8.8%, while Tesla also rose 3.7%.
The S&P 500 index rose 1.54% to 6,832.43 points, the Dow Jones increased 0.81% to 47,368.63 points, while the technology-focused Nasdaq rose 2.27% to 23,527.17 points.
Investor sentiment was also supported by positive developments in Washington regarding a joint agreement to end the prolonged federal government shutdown.
The longest shutdown in US history is expected to end this week after a compromise to restore federal funding cleared an initial hurdle in the Senate on Sunday.
However, a final date for Congressional approval has yet to be set.
The shutdown has also delayed key data for the Federal Reserve, forcing the central bank to rely on private data that paints a mixed picture of the economy.
Several Fed officials have stressed their cautious approach to monetary policy decisions at their upcoming policy meeting, while Fed Governor Stephen Miran has reiterated his call for a significant interest rate cut.
Meanwhile, the third-quarter earnings season is drawing to a close. Of the 446 S&P 500 companies that have filed reports, 83% have beaten expectations, according to LSEG data.
Trading volume on US exchanges was relatively light, with 17.9 billion shares traded compared to an average of 20.8 billion shares over the previous 20 sessions.
