Johnson & Johnson shares soared as the company began shipping its single-dose vaccine, after it became the third COVID-19 vaccine approved by the United States.
US Treasury yields declined after a rapid increase last month on expectations of an acceleration in inflation due to bets on an economic recovery.
The yield on the benchmark 10-year Treasury bonds fell to 1.449 percent, after hitting a one-year high of 1.614 percent.
On the other hand, data showed that manufacturing activity in the United States rose to its highest level in three years in February due to an increase in new orders.
The Dow Jones Industrial Average ended the trading session 1.94 percent higher at 3,1531.36 points, while the benchmark S&P 500 index rose 2.38 percent to close at 3,901.82 points.
The Nasdaq Composite Index jumped 3.01 percent to end the session at 13,589.26 points.
The Russell 2000 index of small cap stocks also jumped, extending its gains since the start of 2021 to about 15 percent, compared to gains of less than five percent for the S&P 500 in the same period.