NEW YORK (AFP) - US stocks on Monday finished higher, capping a sunny day for global markets in a rally that gained force from a more optimistic perception of conflicts in Ukraine and Iraq.

At the closing bell, the Dow Jones Industrial Average was up 15.12 points (0.09 per cent) at 16,569.05.

The broad-based S&P 500 rose 5.21 (0.27 per cent) to 1,936.80, while the tech-rich Nasdaq Composite Index added 30.43 (0.70 per cent) at 4,401.33.

Sam Stovall, chief investment strategist at S&P Capital IQ, said stock buying picked up momentum from "a receding of global tensions."

Equity markets also gained in Europe and Asia.