The Dow advanced 284.97 points or 0.7 percent to 41,113.79, the S&P 500 climbed 24.37 points or 0.4 percent to 5,631.28 and the Nasdaq rose 48.50 points or 0.3 percent to 17,738.16.

Bloomberg's report stated that the Trump administration plans to rescind Biden-era AI chip restrictions as part of a broader revision of semiconductor trade policies. This was followed by a late rally in semiconductor stocks, with the Philadelphia Semiconductor Index rising by 1.7 percent. According to sources familiar with the matter, the repeal aims to overhaul the current policy which categorizes countries into three broad tiers for regulating the export of chips from companies like Nvidia (NVDA) and others.

Airline stocks ended the day notably higher after an early rally, resulting in a 1.2 percent gain by the NYSE Arca Airline Index. The day's volatility was also driven by traders reacting to the Federal Reserve's latest monetary policy announcement. As expected, the Fed left interest rates unchanged but cautioned about growing risks of higher unemployment and rising inflation, which added to market uncertainty.

Asia-Pacific stocks were mostly higher. China's Shanghai Composite Index climbed by 0.8 percent and Australia's S&P/ASX 200 Index rose by 0.3 percent, although Japan's Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent. The major European markets moved to the downside on the day. While the French CAC 40 Index slumped by 0.9 percent, the German DAX Index slid by 0.6 percent and the U.K.'s FTSE 100 Index fell by 0.4 percent.

In the bond market, treasuries extended the upward move seen over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.3 bps to 4.27 percent.

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