At the close, the Dow Jones Industrial Average had risen 0.4 percent, the broad S&P 500 index 1.6 percent and the Nasdaq's technology-heavy composite index 2.7 percent.
This since Friday offered increases of 0.9–1.1 percent.
The next really big milestone for the market is the Federal Reserve's (Fed) decision on the key interest rate on December 10th.
According to the Bloomberg news agency, the 12 members who will make the decision appear to be fairly evenly divided between those who want to lower and those who want to remain in the 3.75–4.00 percent range.
Increased interest rate jump
On Friday, investors were pleased when John Williams, one of the Fed's top officials, said he saw room for another rate cut soon.
Christopher Waller, another of the decision-makers, aired similar views on Monday, according to Bloomberg.
This contributed to increased hopes for a cut in interest rates and to the market now pricing in an 85 percent probability of a quarter-percentage point interest rate cut.
Fears that an AI bubble was about to burst were quickly put aside, at least for the time being.
Instead, it was the AI sector that led the rise.
Index heavy AI traction locomotive
Google's parent company Alphabet continued its winning streak, rising 6.3 percent. Since the company announced an upgraded version of its AI service Gemini last week, the stock has been climbing steadily.
The six other very index-heavy technology companies that, together with Alphabet, are called "the magnificent seven" – all on the list of the world's ten most valuable listed companies – also had a good day and helped to push up the stock market as a whole.
Even better was semiconductor company Broadcom – which collaborates with Alphabet – which surged 11.1 percent. Hard drive manufacturer Western Digital in turn climbed 8.4 and chip company Micron Technology 8 percent.
Semiconductor giant AMD and AI software company Palantir also gained steam with increases of 5.5 and 4.8 percent, respectively.
