US stocks saw a notable increase on Monday, driven by a rally in the tech sector, particularly among chipmakers.

Nvidia experienced a 3% rise, while Broadcom and Advanced Micro Devices surged by 5% and 4% respectively.

All three major indexes closed in positive territory, with the Nasdaq Composite gaining almost 1%.

This upward momentum is occurring as investors anticipate a potential year-end rally, often referred to as a Santa Claus rally, which historically indicates a positive outlook for the following year.

Market analysts highlight that a positive Santa Claus rally has historically preceded an average annual gain of 10.4% for the S&P 500 since World War II.

In contrast, a decline during this period has resulted in a significantly lower average increase of 5.7%.

As the New York Stock Exchange prepares for a short trading day on Tuesday, closing early at 1 p.m. ET for the Christmas holiday, investors remain optimistic about the market's trajectory heading into the new year.