At 2:26 p.m. ET, the Dow Jones Industrial Average rose 227.2 points, or 0.93 percent, to 24,587.34, the S&P 500 gained 22.91 points, or 0.86 percent, to 2,679.21 and the Nasdaq Composite added 51.62 points, or 0.73 percent, to 7,158.27.
The S&P 500’s technology sector was the biggest boost to the benchmark with a 0.8-percent increase followed by the healthcare index which was up 0.97 percent.
UnitedHealth provided the second-biggest boost to the S&P from a single stock a day ahead of its earnings report with a 2.9 percent gain, just behind Microsoft Corp, which was up 1.2 percent.
Merck rose 2.2 percent after the company presented positive data on its cancer drug Keytruda, also boosting the S&P healthcare index.
Shares of optical components makers, including those of Acacia Communications and Oclaro, took a beating after Reuters reported that the U.S. government was banning American companies from selling components to Chinese telecom equipment maker ZTE Corp <0000063.SZ>. Acacia fell 34.4 percent, compared with a 13-percent drop for Oclaro.
JB Hunt Transport Services jumped 6.6 percent after the trucking company’s profit topped estimates.
Bank of America was up 1 percent after a better-than-expected increase in quarterly profit.
Netflix fell 2 percent. The company was due to reports results after the closing bell on Monday.
Advancing issues outnumbered declining ones on the NYSE by a 2.75-to-1 ratio; on Nasdaq, a 2.04-to-1 ratio favored advancers.
The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 66 new highs and 27 new lows.
(Additional reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva and Nick Zieminski)
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