The Dow Jones Industrial Average surged 329.74 points, or 1.27 percent, to 26,258.42. The S&P 500 was up 32.79 points, or 1.16 percent, to 2,867.19. The Nasdaq Composite Index increased 99.59 points, or 1.29 percent, to 7,828.91.
Eight of the 11 primary S&P 500 sectors closed higher, with both financials and industrials up more than 2 percent, leading the advancers.
Major U.S. tech stocks or the so-called FAANG group of Facebook, Apple, Amazon, Netflix and Google-parent Alphabet, all rose, bolstering the market. Positive manufacturing figures from major economies have eased worries of a possible global economic slowdown, experts noted.
"Today's market action showed that the U.S. economy is buoyant. Positive results from China data also help push the market higher," John Monaco, an experienced trader at New York Stock Exchange, told Xinhua.
Economic activity in the U.S. manufacturing sector expanded in March, data released Monday by the Institute for Supply Management (ISM) showed.
According to the latest Manufacturing ISM Report on Business, the March purchasing managers' index (PMI), which gauges the performance of the manufacturing sector, increased to 55.3 from the February reading of 54.2, beating market consensus.