The Dow Jones industrial average rose 232.23 points, or 1.12 percent, to close at 20,996.12, with Caterpillar leading advancers and Verizon the top decliner.
The S&P 500 gained 14.46 points, or 0.61 percent, to close at 2,388.61, with materials leading nine sectors higher and telecommunications and utilities lagging.
The Nasdaq advanced 41.67 points, or 0.7 percent, to end at 6,025.49.
About three stocks advanced for every decliner at the New York Stock Exchange, with an exchange volume of 930.29 million and a composite volume of 3.987 billion at the close.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 10.8.
—CNBC’s Lauren Thomas contributed to this report.
On tap this week:
Tuesday
Earnings: Capital One, Chipotle Mexican Grill, Discover Financial, U.S. Steel, Juniper Networks, Stryker, Panera Bread, United Health Services, Valvoline
Wednesday
Earnings: Boeing, Daimler, Fiat Chrysler, Pepsico, United Technologies, GlaxoSmithKline, Anthem, Alaska Air, Northrop Grumman, General Dynamics, Dr. Pepper Snapple, Hershey, Norfolk Southern, State Street, Credit Suisse, Hess, Seagate Technology, Twitter, Nasdaq, Amgen, Paypal, F5Networks, Tractor Supply, Buffalo Wild Wings, Boston Beer, SixFlags, CR Bard, Whiting Petroleum, Suncor
Thursday
Earnings: Alphabet, Microsoft, Intel, Amazon.com, Raytheon, Baidu, Starbucks, Expedia, Comcast, Bristol-Myers Squibb, Flex, GoPro, Western Digital, Vertex , Sirius XM Radio, Under Armour, American Airlines, Southwest Air, MGM Growth, Generac, Domino’s Pizza, CME Group, KKR, Johnson Controls, Union Pacific, UPS, Total, Celgene, Deutsche Bank, Alexion Pharma, Nintendo, AbbVie, Bayer, Air Products
7:45 a.m. ECB rate decision
8:30 a.m. ECB President Mario Draghi press briefing
8:30 a.m. Jobless claims
8:30 a.m. Durable goods
8:30 a.m. Advance econ indicators
10:00 a.m. Pending home sales
10:00 a.m. Housing vacancies
Friday
Earnings: Exxon Mobil, Chevron, Colgate-Palmolive, Honda Motor, Barclays, UBS, Sony, Synchrony Financial, Spirit Airlines, Autoliv, Sanofi, Spirit Airlines, Goodyear Tire, Calpine, Cabot Oil and Gas, Phillips 66, Weyerhaeuser
8:30 a.m. Q1 adv Real GDP
9:45 a.m. Chicago PMI
10:00 a.m. Consumer sentiment
2:30 p.m. Philadelphia Fed President Patrick Harker
