Breadth is split, with five S&P sectors in the red and five in the green, with Consumer Discretionary flat.
In New York, the Dow Jones industrial average was up 134.73 points at 26,563.05 in late morning trading.
Among the 11 major S&P 500 sectors, the Financials Index is down 0.6% on Tuesday pressured by a 5.5% drop witnessed in the 10-year US Treasury bond yield. The Nasdaq Composite gained 103.36 points, or 0.96 percent, to 10,848.64 at the opening bell.
The three factors driving the markets on Monday were momentum in technology after last week's blowout earnings, a further rise in manufacturing activity in the US and Europe and hopes that USA lawmakers will agree to another round of fiscal relief.
Economic data has consistently surprised to the upside, but it's going to be increasingly hard to beat expectations this month, said Angelo Kourkafas, investment strategy analyst at Edward Jones. The S&P and Dow are up three of the last four sessions.
Microsoft and Apple, which together account for about 12.5 per cent of the S&P500, saw their shares gain.
Microsoft Corp rose 1.9% in premarket trading, as it said it would push ahead with talks to acquire the United States operations of Chinese-owned TikTok, after President Donald Trump reversed course on a planned ban of the short-video app.
With the USA corporate earnings season now past its half-way mark, a record high percentage of companies have beaten dramatically lowered forecasts but the second quarter is still set to be the low point for earnings this year and the biggest quarterly decline since the financial crisis.
"So the negative 40 per cent, even though it's a disgusting number, it's better than expectations".
Fitch Ratings on Friday cut its outlook on United States' triple-A rating to negative from stable, saying the future direction of USA fiscal policy depended in part on the November elections.
The September crude contract was up 74 cents at US$41.01 per barrel and the September natural gas contract was 30.2 cents at US$2.10 per mmBTU.
The December gold contract, which had the highest trading volume, was up 40 cents at US$1,986.30 an ounce after peaking at a record US$2,009.50.