The Dow Jones Industrial Average shot up 603 points Monday, nearly 2 percent, as markets had their best daily rally since June.
The S&P 500 gained 90 points, or 2.4 percent.
Markets have been shaky in recent weeks, as bond yields have spiked, raising concerns that massive government stimulus could lead to inflation.
A spike in inflation could force the Federal Reserve to raise interest rates earlier than markets currently expect. Federal Reserve Chairman Jerome Powell has sought to ease concerns that rates would rise, signaling that the central bank could stomach some inflation above its target in the short run.
Congress is moving fast toward passing President Biden’s $1.9 trillion COVID-19 relief proposal. The House approved the measure early Saturday morning, and the Senate is set to vote on the measure this week before sending it back to the House with any changes.
Democrats have vowed to pass the legislation before emergency unemployment measures expire March 14.