NEW YORK, New York - U.S. stocks made a solid comeback on Monday, following last week's puncturing losses.

All the major indices gained ground in line with a global trend which saw bourses around the world stage rallies.

The passing of U.S. President Joe Biden's $1.9 trillion stimulus package on Friday was a factor, as was the positive news on several fronts about vaccines,

"The sentiment is risk on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment," Keith Buchanan, portfolio manager at GLOBALT in Atlanta told Reuters Thomson Monday.

The Dow Jones rallied 603.14 points or 1.95 percent Monday, to close at 31,535.51.

The Nasdaq Composite did better, rising 396.48 points or 3.01 percent to 13,588.83.

The Standard and Poor's 500 advanced 90.67 points or 2.38 percent to 3,901.82.

The U.S. dollar made ground against most currencies, except for the Aussie and the Kiwi.

The euro sank to 1.2046 around the New York close Monday. The British pound dipped to 1.3921. The Japanese yen decelerated to 106.81. The Swiss franc dived to 0.9150.

The Canadian dollar declined to 1.2658. The Australian dollar however rallied to 0.7770. The New Zealand dollar was in demand at 0.7264.

On overseas equity markets, the FTSE 100 in London rallied 1.62 percent. The Dax in Germany climbed by 1.64 percent. In Paris, the CAC 40 rose 1.57 percent.

On Asian markets, in Japan, the Nikkei 225 led the way with a major 697.49 points or 2.41 percent rise to 29,663.50.

The Australian All Ordinaries jumped 102.10 points or 1.47 percent to 7,042.70.

In Hong Kong, the Hang Seng accelerated 476.80 points or 1.65 percent to 29,457.01.

China's Shanghai Composite finished 44.32 points or 1.21 percent ahead at 3,551.40.