The Dow Jones Industrial Average rose 237.52 points, or 0.76 percent, to 31,385.76. The S&P 500 added 28.76 points, or 0.74 percent, to 3,915.59. The Nasdaq Composite Index increased 131.35 points, or 0.95 percent, to 13,987.64.
Ten of the 11 primary S&P 500 sectors ended in green, with energy up 4.17 percent, leading the gainers. Utilities slipped 0.78 percent, the lone declining group.
U.S.-listed Chinese companies traded mostly higher with six of the top 10 stocks by weight in the S&P U.S. Listed China 50 index ending the day on an upbeat note.
Wall Street assessed the prospects of additional U.S. fiscal stimulus. The United States could return to full employment in 2022 if it enacts President Joe Biden's 1.9-trillion-U.S.-dollar COVID-19 relief package, U.S. Treasury Secretary Janet Yellen said on Sunday.
Citing a recent analysis from the Congressional Budget Office, Yellen said the U.S. unemployment rate is going to "stay elevated for years to come" without additional support.
Yellen's remarks came after both chambers of U.S. Congress on Friday passed a budget resolution, a key step which would allow Democrats to push through Biden's relief package without Republican support.
For the week ending Friday, the Dow increased 3.9 percent, while the S&P 500 index and the Nasdaq advanced 4.7 percent and 6 percent, respectively. All three major benchmarks notched their best week since November.