The Dow rallied 132 points led by technology shares such as Microsoft, which powered the Nasdaq to a one percent gain.

Investor sentiment is riding high on trade optimism, an earnings season that's not as bad as feared, and an expected rate cut from the Federal Reserve coming this week.

Hilary Kramer is chief investment officer at Kramer Capital Research.

SOUNDBITE (ENGLISH): HILARY KRAMER, CHIEF INVESTMENT OFFICER, KRAMER CAPITAL RESEARCH, SAYING:

"There is a 90 percent probability that the Fed is going to cut 25 basis points but with all this good news that the president is presenting to us: decrease in terrorism, China-U.S. trade resolution coming, I mean all of those reasons are enough for the Fed to say we are not going to cut. And if they do that - oh that would be very interesting. I'm just giving you that s scenario."

The Fed starts a two-day meeting on Tuesday.

After Monday's closing bell - there we some key corporate results.

It was a mixed bag from Google parent - Alphabet. The company's third-quarter profits missed analysts forecasts. There was aggressive spending on marketing and hardware development at its Google unit. Company-wide sales jumped a healthy 20 percent, which was bigger than anticipated.

Beyond Meat announced its first quarterly profit since going public earlier this year. The plant-based meat company topped both profit and sales forecast. It also raised its outlook for the year. The meat alternative provider has been busy signing up name brand restaurants like McDonald's for trial runs.

T-Mobile, America's third-largest wireless carrier, beat third-quarter estimates for net new subscribers leading to a better than expected profits. But revenues didn't rise as much as anticipated. T-Mobile said it expects its merger with Sprint to be completed early next year.