The Dow Jones Industrial Average increased 84.29 points, or 0.26 percent, to 33,061.50. The S&P 500 added 23.45 points, or 0.57 percent, to 4,155.38. The Nasdaq Composite Index rose 201.38 points, or 1.63 percent, to 12,536.02.
Earlier in the day, all the three major indexes dropped with the 30-stock index down more than 500 points at its session low.
Six of the 11 primary S&P 500 sectors ended in green, with communication services and technology up 2.43 percent and 1.56 percent, respectively, outpacing the rest. Real estate slipped 2.55 percent, the worst-performing group.
The above market reactions followed a brutal April on Wall Street, which saw the tech-heavy Nasdaq shed 13.3 percent, its biggest monthly drop since October 2008. In April, the Dow and the S&P 500 fell 4.9 percent and 8.8 percent, respectively, their worst month since March 2020.
Investors will look to the Federal Reserve's two-day policy meeting slated from Tuesday to Wednesday. Fed Chairman Jerome Powell will speak to the press after the central bank issues its statement on Wednesday afternoon.
"This Wednesday's meeting is a big one, with the Fed expected to announce a half-point hike and sketch in more increases to come. Plus, we should get a detailed run-off plan for the Fed's balance sheet," Chris Low, chief economist at FHN Financial, said in a note on Monday.
On the economic front, U.S. Manufacturing PMI (Purchasing Managers' Index) fell to 55.4 percent in April from the March reading of 57.1 percent, the Institute for Supply Management reported on Monday. Economists polled by The Wall Street Journal had forecast the index to rise to 57.8 percent. Any number above 50 percent indicates expansion of the sector.
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