Positive signals from US-China economic talks in Madrid also bolstered sentiment.
The Dow Jones edged up 0.1 percent to 45,883, while the S&P 500 Index added 0.5 percent to 6,615.
The Nasdaq jumped 0.9 percent to 22,348.
The movements came as investors maintain expectations that the Fed will make its first rate cut of 2025 at the end of its two-day gathering on Wednesday, as officials move to shore up the economy while the labour market weakens.
The market will likely be in “wait-and-see” mode ahead of the rate decision, said Art Hogan of B Riley Wealth Management.
Importantly, investors will be trying to work out if the central bank is starting a cycle of rate cuts or if it makes a one-off reduction, he said.
Meanwhile, top economic officials from Washington and Beijing also said on Monday that they have reached a framework deal to resolve their dispute over TikTok – as a deadline approaches for the app to find a non-Chinese buyer or face a US ban.
Tesla shares climbed 3.6 percent after CEO Elon Musk disclosed his purchase of around US$1 billion in shares of the electric vehicle company. (AFP)
