After solid data prompted a drop in pandemic darlings like technology firms, stocks that stand to profit the most from an economic recovery rallied, treasuries retreated.
Gains in the S&P 500 were led by mining, commodity, and financial shares.
Small-cap index Russell 2000 outperformed major equity benchmarks, while the tech-heavy Nasdaq 100 fell.
A suggestion that Biden will present a budget that would increase government spending to $6 trillion in the next fiscal year boosted sentiment.
As expectations for an economic recovery cooled inflation fears, equities headed for their fourth consecutive monthly gain.
Treasury secretary Yellen, described the price spike as "temporary," but she expects it to last until the end of 2021.
Data revealed that jobless claims fell to a new pandemic low, while business machinery orders increased more than anticipated.
Although pending home purchases decreased, analysts noted underlying buyer interest, which could lead to an increase in contract signings.
The Russell 2000 has lost ground to the Nasdaq 100, but valuation is on its hand.
The forward price-earnings spread between the small-cap and tech-heavy gauges has narrowed to below the five-year average. and while the Russell 2000 value/growth ratio has ebbed in the latter half of May, the relative strength of value suggests that small-cap stocks can continue to be big beneficiaries of the reopening recovery.
AMC closed on its highest one-day gain since January at 36%.