US market close: Stocks surge as Apple Inc posts its best day since 1 March

US stocks closed higher on Monday 16 May, led by energy stocks and fresh gains in the tech sector, including Apple Inc, who jumped 3.7% and contributed to gains across the board.

The Dow Jones Industrial Average rose 175.39 points, or 1%, to settle at 17,710.71. Gains were led by Apple, which posted off session highs for its best day since 1 March after Warren Buffett's Berkshire Hathaway Inc revealed in a regulatory filing it had bought 9.8 million shares in the company during the first quarter, MarketWatch reported. Home Depot and Boeing also contributed to gains to the Dow.

The S&P 500 closed up 20.04 points, or 1% to close at 2,066.53. The energy and tech sectors, up 1.6% and 1.4% respectively, led gains with all of the S&P's 10 sectors closing higher. A surge in oil prices contributed to gains in the energy sector. The US crude oil futures settled $1.51 (£1.05; €1.33) higher to $47.72 (£33.12; €42.16) a barrel.

Meanwhile, the Nasdaq Composite climbed 57.78 points, or 1.2%, settling at 4,775.46. The iShares Nasdaq Biotechnology ETF (IBB) rose 3.06% for its best day since 6 April. Pfizer also saw gains of 0.6% after purchasing Anacor Pharmaceuticals in a $5.2bn deal.

"It's always good to start the week off with a big M&A transaction, particularly in healthcare," Marc Chaikin, CEO of Chaikin Analytics told CNBC. "This is all very short-term stuff. This is what happens in a trading range," he added.

"I wouldn't get too excited by one day," noted Karyn Cavanaugh, senior market strategist at Voya Financial. "Oil is up, and that's good, but it's not enough to sustain the market until earnings get back on track." According to MarketWatch, first-quarter earnings are tracking at a 7% decline.

Treasury yields traded higher, with the 2-year yield around 0.78% and the 10-year yield near 1.75%. CNBC reported that the US dollar index was flat, with the euro at $1.132 and the yen near 109 against the greenback. Gold futures for June delivery closed up $1.50 (£1.04; €1.33) to settle at $1,274.20 (£884.43; €1,125.82) an ounce.

Overseas, European stocks ended mixed while Asian stocks closed higher. German markets were closed for a holiday, CNBC noted. The Shanghai Composite climbed 0.8% and the Nikkei 225 rose 0.3%.