The Dow Jones industrial average climbed 1.1 percent, the broad S&P 500 index rose 0.5 percent and the tech-heavy Nasdaq composite index rose 0.6 percent.
The gains were driven by figures showing that activity in the US manufacturing industry increased more than expected in January. The manufacturing purchasing managers' index rose to 52.6 from 47.9, with an index reading above 50 indicating increased activity in the sector.
Nvidia fell sharply, down 2.9 percent after Wall Street Journal sources claimed that the AI giant's plan to invest $100 billion in OpenAI may have been put on hold.
Disney fell 7.4 percent despite a financial report that beat expectations. However, the company is facing challenges such as fewer tourists than expected at its theme parks in the United States.
The spot price of gold fell about 4 percent after starting the week's trading with an even steeper decline, with an ounce costing around $4,680.
