The S&P/ASX200 gained 12.4 points by midday on Tuesday, up 0.14 per cent, to 8,848.3, as the broader All Ordinaries rose 16.5 points, or 0.2 per cent, to 9,127.9.
The move followed a strong session on Wall Street, as tech stocks jumped on progress towards an end to the US government shutdown after more than 40 days.
"The markets have burst out of the gate to start the week," Capital.com market analyst Kyle Rodda said.
"There's almost an 'everything rally' flavour to the move, with equities, gold, Bitcoin and high-beta FX moving higher - although bonds were relatively steady overall."
Despite the positive investor mood prompting a relative sea of green across local stocks, a more than five per cent sell-off in CBA shares has wiped $15.6 billion from the group's $282 billion market cap, after its first quarter earnings failed to shoot the lights out.
The drop weighed heavily on the financials sector, which was down 1.3 per cent by midday as it and IT stocks (-1.1 per cent) traded lower.
Life360 dragged on the tech sector performance, the California-headquartered tracking software provider tanking 7.3 per cent to $44.81 despite posting record third quarter revenue, which came alongside news it will buy advertising platform Nativo for $US120 million ($A183.8 million).
Raw materials led the remaining nine sectors higher, up 1.4 per cent as gold stocks rallied, iron ore giants bounced and rare earths and critical minerals producers garnered continued buyer attention.
Spot gold rose to $US4,133 ($A6,324) an ounce, boosting ASX-listed miners like Northern Star, Newmont and Genesis each more than four per cent higher.
BHP, Rio Tinto and Fortescue rebounded around one per cent each after a heavy start to the week, as iron ore futures found support overnight  and as copper prices edged higher, after Goldman Sachs upgraded its growth outlook for China.
Energy stocks surged 1.2 per cent as oil prices lifted on hopes of a return to relative normalcy for the US government.
Woodside and Santos each gained more than 1.2 per cent each, while coal producers were broadly flat, and uranium stocks faded as investors took profits on Monday's rally.
Consumer discretionary stocks jumped 0.7 per cent, despite mixed moves across the sector, as Westpac's monthly consumer sentiment surged to its first positive read since August 2022 and a seven-year high.
Shares in Endeavour Group jumped more than two per cent after it announced it had snagged Supercheap Auto boss to head up Dan Murphy's as managing director.
Scentre Group shares edged 0.6 per cent higher after recording 3.7 per cent sales growth for the Westfield owner.
The return of risk-on sentiment has supported a bounce in crytocurrency Bitcoin, which is up more than seven per cent from recent lows, trading at $US106,500 ($A163,085).
The Australian dollar is buying 65.34 US cents, up slightly from 65.27 US cents on Monday at 5pm.
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