The Dow ticked up two-tenths of a percent, the S&P 500 gained more than six-tenths while the tech-heavy Nasdaq climbed eight-tenths of a percent.

Google parent Alphabet gained nearly 4.5% after a media report that Apple is in talks to build Google's Gemini AI engine into the iPhone.

That's a partnership investors would welcome, says Chris Carey, Portfolio Manager at Carnegie Investment Counsel.

"Apple is one of the last major tech companies that has yet to really talk about their endeavors into the world of world of AI. They've been very... they've kept their details very close to their chest on this one. So I think it's very encouraging that they've chosen to partner with Google, a company that they have a long-lasting relationship with in terms of Google being the default provider for search [flash] and so I think that this is quite encouraging to investors to see that Apple is trying to take this seriously."

In other AI news, shares of Nvidia added more than half a percent but closed well below their session high. The world's leading AI chipmaker kicked off its annual developer conference Monday with Chief Executive Jensen Huang unveiling the new flagship AI chip, the Blackwell B200.

Tesla shares finished up more than 6% after the electric carmaker said it would soon increase the price of its Model Y EVs in parts of Europe.

And shares of server-maker Super Micro Computer, which joined the S&P 500 on Monday, gave up earlier gains to close down nearly 6.5%, making it the biggest percentage decliner on the day in the benchmark index. Its shares, however, are up roughly 280% so far this year.

Investors now look to the Federal Reserve for updates on when possible rate cuts may begin, with the central bank's March policy meeting concluding on Wednesday.