The tech-heavy Nasdaq 100 index soared 4.0 percent. The best performer was Tesla, whose shares skyrocketed over 14 percent on upbeat China sales. Meanwhile, exercise equipment company Peloton surged 13.17 percent after announcing plans to expand to Australia.
The Dow Jones rallied 1.04 percent or 331 points to hit a new all-time high. Intel and Apple led the gains, both rising more than 4 percent. The S&P 500 jumped 2.06 percent.
Equities on the Asian markets traded mixed on Tuesday after Japan's Cabinet Office released its final fourth-quarter GDP data, revised downwards compared to the preliminary report, still showing the value of goods and services in the country rising by 11.7 percent over the year.
South Korea's Kospi lost 0.52 percent, while Japan's Nikkei 225 went up by 0.92 percent, with the Australian S&P 200, increasing 0.50 percent, while Hong Kong's Hang Seng climbed 1.58 percent. In mainland China, the Shanghai Composite decreased by 0.18 percent, with the Shenzhen Composite down by 0.44 percent.