The Dow rose six-tenths of a percent while the S&P 500 jumped 1.4% and the Nasdaq soared 2.2%.

Among those leading the charge: Nvidia, which surged nearly 6.5%, rallying to a record closing high, after the world's most valuable chipmaker unveiled new AI-driven graphics processors. Fellow chipmaker Advanced Micro Devices jumped 5.5%.

"We're looking at the markets rising sharply today after a bit of sell off early last week...."

Geetu Sharma is founder and investment manager at AlphasFuture.

"We are seeing a strong recovery and very strong gains in the tech stocks. I think we have some positive news flow around Nvidia. We're also seeing this sentiment -- momentum around spot bitcoin ETF that everybody's expecting the SEC to approve. So that's, I think, giving a further boost to some of these technology, AI-speculative stocks, as well."

Apple climbed nearly 2.5% after the iPhone maker said its Vision Pro mixed-reality device will be available for sale beginning Feb. 2 in the U.S.

Meanwhile, keeping the Dow in check, shares of Boeing plunged 8% as controversy surrounds its 737 Max planes. Days after a panel blew off an Alaska Airlines-operated MAX 9 mid-flight, the plane maker and U.S. regulators gave the go-ahead on Monday for airlines to inspect jets that have been grounded in response to the incident.

Investors were given more interest-rate tea leaves to read, as Atlanta Federal Reserve President Raphael Bostic said that with inflation still above the central bank's 2% target, his bias is for monetary policy to remain tight.

On that front, the closely-watched consumer price index and producer price index reports are due later this week.