Wall Street advanced as solid economic data and a sigh of relief for the health care industry underpinned sentiment.
The latest data on the US economy bolstered expectations that the recovery is on track at a pace that will also safeguard the Federal Reserve's backing.
Factory orders advanced 3 per cent in February, slightly ahead of economists' expectations for a 2.9 per cent gain.
"Good numbers are good and bad numbers are good because it keeps the Fed at the side of the market," Burt White, managing director and chief investment officer at LPL Financial in Boston, told Reuters. "The market continues to move higher, driven by the premise of stimulus."
In afternoon trading in New York, the Dow Jones Industrial Average rose 0.65 per cent, as did the Standard & Poor's 500 Index, while the Nasdaq Composite Index gained 0.73 per cent.