The U.S. stock market closed higher on Monday, with all three major indices posting gains. The S&P 500 rose 0.72% to 7,537.43, the Nasdaq Composite gained 1.12% to 26,121.16, and the Dow Jones Industrial Average increased 0.29% to 53,055.91, marking its first close above 53,000. The broad-based rally was driven by a resurgence in optimism around artificial intelligence (AI) stocks, which saw a rebound after a recent selloff. Chip stocks, including AMD, Nvidia, Micron, and Intel, led the Nasdaq's advance, while the Dow's performance was bolstered by a surge in Dell's shares following a White House event featuring former President Donald Trump.

The overall tone of the session was risk-on, with investors seemingly more comfortable with the market's recent volatility. The holiday weekend, which included Independence Day, may have also contributed to the positive sentiment, as it provided a brief respite from the usual trading schedule. However, the rebound in tech stocks was not uniform, with Microsoft experiencing a decline amid reports of job cutbacks. The dollar edged higher, which could have had a slight dampening effect on the market, as a stronger greenback typically benefits non-U.S. assets. The focus for the upcoming week is expected to remain on AI-related stocks, with the Fed's remarks and services sector data also likely to influence market sentiment.