The Dow Jones industrial average rose 75.35 to 5,729.98, its best one-day gain since adding almost 100 points on March 18.
Advancing issues outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,407 up, 1,063 down and 701 unchanged. NYSE volume totaled 345.73 million shares vs. 462.22 million in the previous session.
Broad-market indexes rallied into the close, too.
The NYSE composite rose 2.50 to 361.70, and the Standard & Poor's 500 list gained 5.25 to 675.88.
The Nasdaq composite index advanced 12.63 to 1,197.65, its third straight gain of more than 12 points; and the American Stock Exchange's market value index rose 3.46 to 580.25.
The technology sector continued to bounce back from a recent slide on worries about computer industry profits. Leading industry names such Intel Corp., Cisco Systems and Microsoft Corp. led the Nasdaq market, while IBM led the technology advance in the Dow and the NYSE.
The Fed's policy-makers meet Tuesday and Wednesday for a meeting on the central bank's interest rate strategy.
Economists have been divided over whether the Fed would raise rates to slow borrowing and spending as a pre-emptive strike against inflation.