The Dow Jones Industrial Average rose 54.91 points, or 0.23 percent, to 24,344.96.
S&P 500 e-minis were up 5.75 points, or 0.22 percent, with 191,990 contracts traded.
The rest of the market closed lower, however, as a sharp decline in tech pressured the S&P 500 and Nasdaq composite.
The pullback by the Nasdaq may reflect concerns that technology companies will not benefit as much from the tax cuts.
With the vote to approve the bill, lawmakers from the Senate and House will need to go to conference to work out differences in the bills passed by the two chambers. The Nasdaq Composite Index was up 50.65 points, or 0.75 per cent, to 6,826.01.
US stocks were heading lower into the close after topsy turvey trading on the day.
Analysts said market sentiment was boosted by the prospect of the tax bill, sending the Dow Jones Industrial Average to record highs on Monday. And that attracted buyers.
On the U.S. economic front, the Commerce Department released a report showing a modest decrease in new orders for manufactured goods in the month of October.
Steel, brokerage, and oil service stocks are also seeing notable strength, while weakness among software, semiconductor, and internet stocks is contributing to the drop by the tech-heavy Nasdaq. While the U.K.'s FTSE 100 Index rose by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.4 percent and 1.5 percent, respectively.
The S&P 500 is up 400.61 points, or 17.9 percent.
Meanwhile, the major European markets all moved to the upside on the day. The suspension is based on findings from a 2016 commission that sought to examine Russian officials and institutions involved in organized doping. Wildfires are raging outside Los Angeles, and investors are guessing the damage could result in losses for the company's Southern California Edison electric utility subsidiary.
In the bond market, treasuries are giving back ground following the strong upward move seen last Friday. The yield on the 10-year Treasury note dropped to 2.35 percent from 2.37 percent late Monday.