The Dow Jones Industrial Average increased 269.93 points, or 1.05 per cent, to 25,898.83. The S&P 500 rose 31.27 points, or 1.10 per cent, to 2,878.38, Xinhua news agency reported.
The Nasdaq Composite Index was up 101.97 points, or 1.32 per cent, to 7,853.74.
All of the 30 blue-chip stocks in the Dow extended gains around market close, with shares of Apple rallying 1.9 per cent, leading the gainers.
Shares of widely-seen trade bellwethers Intel and Cisco Systems rose over 1.33 per cent and over 1.05 per cent, respectively, among the best performers.
Semiconductor stocks, also sensitive to US-China trade relations, jumped around market close, with the Philadelphia Semiconductor Index up 0.86 per cent.
Ten of the 11 primary S&P 500 sectors traded higher around market close, with the communication services up nearly 1.1 per cent, leading the advancers.
Investors have kept a close eye on the variable development of the US-initiated trade war with China, which weighed on the already-dampened investor sentiment across the globe.
The US academic, business and financial communities have all voiced hopes over the weekend that the two sides could go back to the negotiating table and resume sincere conversations in concerted efforts to ease the long-lasting tensions.
On the economic front, US durable goods orders rose 2.1 per cent in July, reaching $250.4 billion, the Department of Commerce said on Monday.
However, shipments of manufactured durable goods in July declined 1.1 per cent to reach $254.0 billion, following a 1 per cent growth in June.
( With inputs from IANS )