Stocks finished more than 1 percent higher across the board Tuesday, extending the previous day's rally, amid optimism over a solution for Greece's debt crisis and ahead of the quarter's end.
The Dow Jones Industrial Average jumped 145.13 points, or 1.21 percent, to finish at 12,188.69, marking another triple-digit gain to log its best day in over two months.
Caterpillar , McDonald's and Home Depot led the blue-chip index gainers while JPMorgan was among the few laggards.
The S&P 500 advanced 16.57 points, or 1.29 percent, to close at 1,296.67. The tech-heavy Nasdaq climbed 41.03 points, or 1.53 percent, to end at 2,729.31.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, slipped near 19.
Among key S&P 500 sectors, energy and consumer discretionary were the top gainers.
However, volume was on the lighter side with the consolidated tape of the NYSE at 3.19 billion shares, while 804 million shares changed hands on the floor.
Despite the day's gains, some strategists still remain skeptical that the correction has come to an end.
"I'd like to see another 2-percent move in the Nasdaq and S&P and then I'll be more inclined to be a buyer on the strength," Matthew Cheslock, senior specialist of Cohen Capital Group told CNBC. "Right now, you can sell into this rally as you should be prone to do when there is buying."
Greek lawmakers are expected to vote Wednesday and Thursday on the austerity measures, which must be passed in order to receive the next payment of its bailout.
If the government does not get the next tranche, analysts said Greece could defaulton its debt, possibly sparking a Europe-wide crisis and potential credit market freeze.
Meanwhile, demonstrators gathered in central Athensat the start of a 48-hour strike to protest the vote.
The euro edged higher against the dollar but gains were limited ahead of the vote.
Oil prices gained with U.S. light, sweet crude rose $2.28 to settle at $92.89 a barrel, while London Brent crude climbed $2.79 to settle at $108.78. Oil services climbed across the board including Halliburton, Nabors and Schlumberger.
Meanwhile, airlines including Delta and AMR slipped amid concerns rising oil prices will eventually translate into higher gasoline costs.