The Dow Jones Industrial Average jumped 270 points to a record shortly after the open. The S&P 500 rose 0.4% and the Nasdaq Composite rose 0.5%.
Traders are monitoring the latest developments with the assassination attempt on Trump, the Republican candidate for president. While it has the potential to cause more political turmoil in the country, investors are also speculating that it could push Trump and Republicans further ahead in the polls ahead of the November election.
The Republican National Convention will begin on Monday in Milwaukee, Wisconsin, with Trump seen ahead of President Joe Biden in national polls.
Shares of insurers Humana and UnitedHealth Group, which could benefit from less cost pressures coming from the Republican administration, rose in pre-market trading. Halliburton added more than 1% amid market optimism.
Elsewhere, investors' attention is focused on the second quarter earnings report. The report could provide the latest catalyst for a market that has soared to new records this year.
Shares of Goldman Sachs rose on Monday after reporting earnings that exceeded analysts' expectations. It's one of more than 40 S&P 500 companies reporting second-quarter earnings this week, a list that also includes big names like Bank of America, United Airlines and Netflix.
Investors will also follow statements from Federal Reserve Chairman Jerome Powell at the Economic Club of Washington later.
The US dollar index, which measures the currency against six major currencies, strengthened by 0.01% to trade at 103.794
The euro was little changed at $1.0911 after earlier hitting its highest level since March at $1.0921, while sterling slipped 0.03% to $1.2989.
Long-term US bond yields rose on expectations that a Trump victory would see policies that would increase government debt and spur inflation. The benchmark 10-year Treasury yield was last up about 3.5 basis points at 4.2197%.
