Data showing lower US inflation pressures and rising manufacturing activity last month also added to the upward push.

The Dow Jones Industrial Average was up 95.59 points (0.77 percent) at 12,577.66 at the closing bell.

The broad-based S&P 500 added 14.18 (1.10 percent) to 1,307.85, while the tech-rich Nasdaq Composite rose 40.89 (1.50 percent) to 2,768.97..

The Nasdaq's surge was helped by a 4.4 percent surge in online retailer Amazon and Intel's 1.3 percent rise.