Wall Street indexes kicked off the week on a solid ground, powered by gains in mega-cap stocks, while investors braced for a wave of corporate earnings and a crucial inflation report that could steer the market's next move.

Markets shook off last week's turbulence, sparked by renewed concerns over systemic credit stress in the banking sector, as investors piled into tech heavyweights in a classic "buy the dip" move.

Apple shares rose 4.3% to a record high, while Meta and Netflix gained more than 2% each. Alphabet added more than 1%.

The CBOE Volatility Index, Wall Street's fear gauge, slipped to its lowest in over a week, signaling a return of investor confidence.

"AI is the story and investors are excited about the tremendous productivity gains that will come from AI. You have massive spending that will be further validated by many of the 'magnificent seven'," said Eric Schiffer, CEO private equity firm, Patriarch Organization.

Investor attention this week will also be on earnings from Wall Street heavyweights, including Tesla, Ford, GM and Netflix, as they are expected to offer a fresh stress test for equities trading near lofty valuations.

Some U.S. regional bank results, too, will be monitored for a pulse-check on the sector's health.

S&P 500 companies are expected to post a 9.3% year-on-year jump in third-quarter profit, according to LSEG IBES data.

At 12:23 p.m., the Dow Jones Industrial Average rose 379.98 points, or 0.82%, to 46,570.59. The S&P 500 gained 62.17 points, or 0.93%, to 6,726.18, while the Nasdaq Composite advanced 300.58 points, or 1.33%, to 22,980.56.

The Philadelphia Semiconductor Index hit an all-time high, and was last up 2.2%.

Micron shares rose 3.6% and hit a record high after Barclays raised its price target on the stock. ON Semiconductor and KLA added 5.6% and 4.8%, respectively.

S&P Energy index gained 0.3%, while industrials added almost 1%.

On the trade front, U.S. President Donald Trump suggested easing tariffs on China if Beijing resumes key agricultural purchases such as soybeans. He, however, blamed the latest breakdown in talks on China's tightening control over rare earth exports.

A U.S. government shutdown, which began on October 1, has halted key economic data releases, leaving investors without crucial indicators. That places Friday's consumer price report, a pivotal inflation gauge, firmly in the spotlight ahead of the Federal Reserve's policy meeting on October 28-29.

While September's core inflation is expected to hold steady at 3.1%, markets widely expect a quarter-point rate cut this month, with another reduction likely in December.

Among other stocks, Applovin dropped 3.8% after Fuzzy Panda disclosed a short position in the company.

Boeing gained about 1% after the planemaker won approval from the U.S. Federal Aviation Administration to raise 737 MAX production to 42 planes per month.

WeightWatchers climbed 9.4% after the company partnered with Amazon for weight-loss drug delivery.

Advancing issues outnumbered decliners by a 4.14-to-1 ratio on the NYSE and by a 3.17-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and four new lows, while the Nasdaq Composite recorded 60 new highs and 47 new lows.