The benchmark S&P 500 and the Nasdaq Composite have gained as artificial intelligence-related stocks rebounded from last week's sharp sell-off, with easing oil prices providing additional support ahead of key earnings reports this week.
Both indices had posted their biggest weekly drop since late June on Friday as concerns that higher interest rates could curb investments in AI infrastructure weighed on technology stocks, particularly data centre operators.
The sell-off reflected mounting investor unease over how the costly AI build-out will be financed, a question that has increasingly pressured companies underpinning the US bull market which recently marked its fourth anniversary.
The blue-chip Dow, however, was weighed down by modest declines in JPMorgan Chase, Sherwin-Williams and Visa.
The session coincided with the 39th anniversary of Black Monday, the 1987 crash when the Dow Jones Industrial Average index had tumbled 22.6 per cent.
Chip makers Broadcom climbed 2.2 per cent and Micron jumped 4.3 per cent on Monday.
The Philadelphia Semiconductor Index rose 2.5 per cent, putting it on course to end an eight-day losing streak, its longest run of declines since October 2008.
Amazon.com was up 2.3 per cent after Morgan Stanley named the e-commerce and cloud computing firm as its "top pick".
Goldman Sachs upgraded CoreWeave to "buy" from "neutral," saying the recent sell-off offers a buying opportunity.
Shares of the data centre firm were last up 0.2 per cent after plunging more than 25 per cent last week on worries over its $US50 billion ($A72 billion) debt load.
"The tech sell off last week because of the rise in interest rates and the problems with CoreWeave sending shockwaves through the market. I don't think that is over just yet," said Sam Stovall, chief investment strategist at CFRA Research.
"Certainly, corporate reports are all going to be important this week but investors will be evaluating which companies are most vulnerable."
Meta is expected to beat Wall Street expectations when it reports results on Wednesday.
Elon Musk-led Tesla's earnings are also due that day while SpaceX is scheduled to report on Tuesday.
In early trading on Tuesday, the Dow Jones Industrial Average fell 102.02 points, or 0.20 per cent, to 51,900.39, the S&P 500 gained 34.27 points, or 0.45 per cent, to 7,693.71 while the Nasdaq Composite rose 249.13 points, or 0.95 per cent, to 26,389.16.
Most S&P 500 constituents posted losses but the heavy-weight technology sector led gains with a 1.2 per cent increase.
Brent futures were last down 1.3 per cent at about $US108 a barrel following US President Donald Trump's decision to waive some sanctions on Russia.
Intel shares rose 5.1 per cent after JPMorgan upgraded the stock to "neutral" from "underweight".
Cleveland-Cliffs surged 8.7 per cent after the steelmaker surpassed analysts' estimate for third-quarter profit.
Declining issues outnumbered advancers by 1.18-to-1 on the NYSE while advancing issues outnumbered decliners by the same ratio on the Nasdaq.
The S&P 500 posted eight new 52-week highs and two new lows and the Nasdaq Composite recorded 12 new highs and 120 new lows.