Trading might prove muted for the first half of the week, as investors wait for the results of a two-day meeting of Open Market Committee at the U.S. Federal Reserve.
Policymakers are expected to make an announcement on how long the central bank will continue with an $85 billion per month asset purchasing program.
The New York Federal Reserve bank said its general business index for June was positive although many of the individual monthly measurements, such as new orders and employment, slipped from the previous month.
That National Association of Home Builders said their monthly confidence index turned positive for the first time in more than seven years. More home-builders now view business as good, rather than as bad, the trade group said.
On Wall Street, the Dow Jones industrial average added 109.67 points or 0.73 percent to reach 15,179.85. The Standard & Poor's 500 gained 12.31 points or 0.76 percent to close at 1,639.04. The Nasdaq composite added 28.58 points or 0.83 percent to 3,452.13.
On the New York Stock Exchange, 2,069 issues advanced and 1,586 declined on volume of 3.1 billion shares.
Japan's Nikkei 225 index, added 2.73 percent or 346.60 points to 13,033.12. Britain's FTSE 100 index added 0.35 percent or 22.23 points to 6,330.49.
The 10-year treasury note fell 13/32 to yield 2.184 percent.
Crude oil prices closed at $96.83 a barrel on the New York Mercantile Exchange, gaining 16 cents. Gold dropped $2.70 to reach $1,384.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
On currency markets, the euro fell to $1.3369. Against the yen, the dollar was higher at 94.56 yen.
On the Chicago Board of Trade, corn for July delivery added 11 1/2 cents to hit $6.66 1/2 per bushel while soybeans lost 12 3/4 cents to close at $15.85 1/2 and wheat added 2 3/4 cents to finish at $6.83 1/2.
Notable deaths of 2014 [PHOTOS]