The Dow ended 112 points up, a gain of 0.7% to a new high of 16,695.47. The Standard and Poor's index gained one percent, reaching 1,896.65, six points higher than it previous high of 1,890.90. The S&P 500 is inching closer to the major milestone of 1900 points.
The Nasdaq Composite also climbed 71.99 points to 4,143.86.
Internet and biotechnology stocks led the rally, after being highly volatile in the last few sessions. Both these sectors are considered momentum stocks because of the huge gains made by them in the last few months.
The markets seemed to be following European shares with London's FTSE 100 index, Germany's DAX and France's CAC 40 index also posting decent gains.
China's Shanghai Composite jumped 2.1% to 2,052.87 after the government announced that local governments will be allowed to issue bonds and to streamline the approval process for initial public stock offering.
India's Sensex index also rose 1.88 percent on the last day of voting in its general elections. Results will be announced May 16.