U.S. stocks closed about 1 percent higher Monday, with energy stocks leading as oil prices hit fresh highs for the year so far.
"I think Apple and oil, they are really overshadowing everything else," said JJ Kinahan, chief strategist at TD Ameritrade.
Apple closed 3.7 percent higher, off session highs but still posting its best day since March 1. ( Tweet This ) The stock is 29.4 percent below its 52-week intraday high touched last July and fell last week below $90 a share to touch a new 52-week intraday low.
Apple contributed the most to gains in the Dow Jones industrial average, which closed about 175 points higher after earlier adding more than 200 points. Home Depot and Boeing had the next greatest positive impact on the Dow.
The Nasdaq composite outperformed, closing up 1.2 percent with the iShares Nasdaq Biotechnology ETF (IBB) rising 3.06 percent for its best day since April 6. The VanEck Vectors Semiconductor ETF (SMH) closed up 2 percent for its best day since April 13.
Pfizer is buying Anacor Pharmaceuticals in a $5.2 billion deal to add an eczema gel to its portfolio, just a month after plans to acquire Allergan fell apart. Shares of Anacor surged 57 percent while Pfizer gained nearly 0.6 percent and Allergan closed up 0.75 percent.
"It's always good to start the week off with a big M&A transaction, particularly in health care," said Marc Chaikin, CEO of Chaikin Analytics.
"This is all very short-term stuff. This is what happens in a trading range," he said, also noting some sentiment in the market of "bad news is good news" in delaying the next Fed rate hike.