Wall Street climbed as investors found value in some stocks following last week's declines.
Wall Street's fear gauge- the CBOE Volatility Index - dropped 20.3 per cent to 12.36 as concern that tensions between the US and North Korea will lead to war eased.
"There's still cash on the sidelines looking for an opportunity to buy the dip," Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama, told Reuters. "And they're in there with both hands today."
In 3.18pm trading in New York, the Dow Jones Industrial Average rose 0.6 per cent, while the Nasdaq Composite Index rallied 1.3 per cent. In 3.04pm trading, the Standard & Poor's 500 Index climbed 0.9 per cent.
US Treasuries fell, pushing yields on the benchmark 10-year note three basis points higher to 2.22 per cent.