The gains came even as the US Federal Reserve's near-term monetary policy grew increasingly foggy due to scarcity of official economic data thanks to the government shutdown.
Tech and tech-related firms helped boost the Nasdaq to the biggest gain, while healthcare companies held the Dow in negative territory.
Among the major drivers to the upside, Amazon.com jumped after the company announced it struck a $US38 billion deal with OpenAI to allow the ChatGPT maker to run and scale its artificial intelligence workloads on Amazon Web Services' cloud infrastructure.
Nvidia shares gained after US President Donald Trump said the AI chipmaker's most advanced microchips will be reserved for US companies and kept out of China and other countries.
Over the weekend, the White House released details about the agreement reached by US President Donald Trump and Chinese President Xi Jinping to de-escalate the trade war between the world's two biggest economies.
