The Dow Jones Industrial Average, the broadest gauge of the New York Stock Exchange, gained 0.8 percent to close the day at 30,212. The Dow lost 3.3 percent last week and 2 percent for all of January.
The S&P 500, a barometer for the top 500 US stocks, settled up 1.6 percent at 3,773. It lost 3.3 percent last week and 1 percent for January.
The technology-laden Nasdaq index, which counts on the performance of industry giants such as Facebook, Apple, Amazon, Netflix and Google, jumped 2.6 percent to finish at 13,403. The Nasdaq tumbled 3.5 percent last week, but still managed to finish January about 2 percent higher.
According to recent data, this battle between small-time online stock traders and professionals has hit on institutional investors, with hedge funds posting an estimated $70.87 billion in losses in the last month alone, thanks to the short squeeze, with $19 billion of that on short GameStop stocks alone.