The Dow Jones Industrial Average rose 0.5 percent, the broad S&P 500 index rose 0.7 percent and the tech-heavy Nasdaq Composite rose 1.2 percent. This followed strong gains on Tuesday.
The development comes after President Donald Trump's statements suggesting that an end to a war with Iran may be near, and despite denials from Tehran.
In addition, there were positive statistics on US retail sales in February and on the number of new jobs in the country's private sector in March.
Several index-heavy technology companies - such as Google owner Alphabet, Facebook owner Meta, cloud giant Amazon and electric car manufacturer Tesla - showed healthy gains.
Processor manufacturer Intel said it is investing the equivalent of SEK 134 billion to regain full ownership of a chip factory in Ireland. The stock rose 8.8 percent.
Hard drive company Western Digital rose 10.1 percent after analyst firm Bernstein raised its target price from $170 to $340.
Data storage company SanDisk and chip company Micron climbed 9.0 and 8.9 percent, respectively, after new buy signals.
Sports equipment giant Nike, on the other hand, plunged 15.5 percent after a quarterly report whose forward guidance was poorly received.
The price of oil is fluctuating around the $100 per barrel mark. A barrel of North Sea oil now costs $101.
