There was a broad rise on Wall Street on Monday. All three major indices rose above one percent.
A number of acquisition news and positive vaccine news helped lift sentiment.
AstraZeneca announced on Monday that it has resumed testing of the vaccine in its Phase 3 study in the UK.
“There is a little more positivity about the vaccines,” Robert Carnell of ING Group told the Wall Street Journal.
– The resumption of the AstraZeneca tests will be seen in that light, he continued.
Nvidia announced on Monday that it is buying chip maker Arm Holdings from SoftBank for $ 40 billion. Gilead also announced that it is acquiring Immunomedics to expand its focus on cancer treatment. The deal is worth $ 21 billion.
Mergers and acquisitions have “really lifted the market,” said Paul Nolte of Kingsview Investment Management, according to Reuters.
Nolte further said that “value-related” areas in the market are doing well, and continues the recent trend.
“This makes us believe that the recent rotation we have seen out of tech and into other parts of the market will probably continue,” he said according to the news agency.
The rise on Monday comes in the wake of a broad decline on Wall Street last week. The S&P 500 fell 2.5% last week, and is down 4.6% so far this month. The fall has largely been driven by tech stocks, which have done very well this year.
Last week, Nasdaq had the worst week since March, with a fall of four percent.
The Dow Jones rose 1.18 percent to 27,992.38.
27 of the 30 stocks in the index rose.
The winner was the credit card company and Warren Buffett favorite American Express which rose 3.76 percent.
Apple got a nice revenge after falling sharply in the last couple of weeks, and rose 3.0 percent. According to CNBC, it is expected that Apple will launch a new iPad and Apple Watch during an event on Tuesday.
Boeing rose 3.2 percent, while Home Depot climbed 1.5 percent.
The loser was Chevron which fell 0.5 percent.
Nasdaq rose 1.87 percent to 11,056.65.
Tesla rose as much as 12.6 percent to $ 419.62. This happens after the stock has fallen sharply in the last couple of weeks. In the last year, the share is up over 750 percent.
The truck manufacturer Nikola rose 11.4 percent after responding to the report from Hindenburg Research which accused Nikola of fraud.
Nikola believes the Hindenburg report is designed to give a false impression to investors and to manipulate the market negatively to give a financial advantage to short sellers.
Hindenburg has itself shorted the Nikola share.
Immunomedics rose 98 percent after it became clear that it was being acquired by Gilead.
The S&P 500 rose 1.27 percent to 3,383.55.
Delta Airlines rose 3.6 percent after landing a $ 6.5 billion loan deal.
Micron Technology rose 6.4 present after being upgraded to buy from holdings of Goldman Sachs, according to CNBC.
VIX, or the fear index, fell 4.28 percent to 25.72.
At the close of trading in the US, Brent oil is down 0.48 percent to $ 39.64 per barrel, while WTI oil is down a marginal 0.11 percent to $ 37.29 per barrel.
The gold price is up 1.01 percent to $ 1,967.60 per ounce.
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