The Dow Jones Industrials ballooned 317.02 points to conclude Tuesday at 34,261.42.
The S&P 500 gained 29.73 points to 4,439.26.
The NASDAQ index sprang up 75.22 points to 13,760.70.
Salesforce's stock rose nearly 4% after the company announced it would increase prices across the board in August. Activision Blizzard's shares jumped 10.02% after a federal judge denied the Federal Trade Commission's request for a preliminary injunction to stop Microsoft's acquisition of the video game company. The decision meant that the two companies were closer to completing their deal.
Second-quarter earnings season kicks off later this week with results from “systemically important financial institutions” such as JPMorgan Chase, Wells Fargo and Citigroup, plus BlackRock, PepsiCo and Delta Air. Dow component UnitedHealth reports Friday.
The June consumer price index report set for release Wednesday, as well as the June producer price index due out Thursday, will shed light on whether the decline in inflation has continued, and create the backdrop for future direction of interest rates.
Investors have penciled in another quarter-point increase at the Federal Reserve's July 25-26 meeting. But they are undecided about what the central bank will do at its September meeting after last week's continued robust jobs data raised concern that policymakers will revert to raising rates following the June pause.
Prices for the 10-year Treasury were up a bit, lowering yields to 3.98% from Monday's 4.01%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.91 to $74.90 U.S. a barrel.
Gold prices surged $6.60 to $1,937.60 U.S. an ounce.