Wall Street saw gains after former President Donald Trump shared upbeat remarks on U.S.-China trade talks, noting they had 'gone very well.' He hinted at a deal involving a company favored by young Americans, likely TikTok, and highlighted strong ties with Chinese President Xi Jinping ahead of their Friday call. Investors also looked ahead to the Federal Reserve's Wednesday policy announcement, with expectations of a rate cut amid subdued inflation and a softening labor market.

CME Group's FedWatch Tool is currently indicating a 96.4% chance the Fed will cut rates by 25 basis points and a slim 3.6% chance of a half-point rate cut. Traders are focused on the Fed's statement and Chair Jerome Powell's remarks for signals on future policy moves. While another 25-basis-point cut is expected in both October and December, Powell is likely to stress that further decisions will hinge on upcoming economic data.

Computer hardware stocks turned in some of the market's best performances, with the NSYE Arca Computer Hardware Index surging by 2.5% to a record closing high. Networking stock was significantly strong, as reflected by the 2.3% jump by the NYSE Arca Networking Index. Gold, steel and software stocks too saw considerable strength while airline, oil service and housing stocks showed notable moves the downside.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index advanced by 0.9%, while China's Shanghai Composite Index fell by 0.3%. European stocks moved mostly higher on the day. The French CAC 40 Index jumped by 0.9% and the German DAX Index rose by 0.2%, although the U.K.'s FTSE 100 Index bucked the uptrend and edged down by 0.1%.

In the bond market, treasuries regained ground following the pullback seen during last Friday's session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.7 basis points to 4.034%.

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