The broad S&P 500 index and the Dow Jones industrial average both rose 0.8 percent, while the tech-heavy Nasdaq composite index rose 1.1 percent.
During the day, it was reported that Facebook's parent company Meta had agreed to a large deal with AMD to buy millions of chips. Meta may also become a partner with AMD, whose stock rose 8.8 percent.
Semiconductor giant Nvidia will present its interim report after the stock market closes on Wednesday. Nvidia's stock rose 0.7 percent. Taiwanese contract manufacturer TSMC, one of Nvidia's most important suppliers, closed up 4.3 percent.
Home Depot's report was stronger than analysts expected, and its stock rose 2.0 percent.
