The Dow Jones industrial index climbed 0.9 percent, the broad S&P 500 index rose 1.1 percent, while the technology-heavy Nasdaq composite index gained 1.4 percent.
Several of the major technology companies were among the winners on Tuesday. The two chip manufacturers Nvidia and Broadcom rose 0.4 and 3.2 percent, respectively, after US President Joe Biden initiated an investigation into Chinese-made semiconductors that could lead to new tariffs to protect the domestic market.
The electric car manufacturer Tesla also functioned as a locomotive on Nasdaq. The stock surged and rose 7.4 percent.
American Airlines fell around 2 percent in early trading after the airline stopped all its flights in the US on Tuesday morning due to a technical fault. But after the stop was lifted, the stock rose and ended up 0.6 percent.
Trading during the Christmas week is expected to be calm on the New York Stock Exchange, which is closed on Christmas Day but reopens on Boxing Day. With few trading days left in the year, many investors are hoping for a Christmas rally to conclude a already strong stock market year.
