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(Reuters) – Wall Street’s major indexes climbed on Monday on a boost from technology stocks while signs of progress in developing a COVID-19 vaccine and a spurt of multi-billion dollar deals also brightened the mood.
FILE PHOTO: A man walks a dog in the shade away from the midday sun past the New York Stock Exchange (NYSE) building in Manhattan, during hot weather in New York City, New York, U.S., August 11, 2020. REUTERS/Mike Segar/File Photo
Nvidia Corp jumped 9.0% on plans to buy UK-based chip designer Arm from Japan’s SoftBank Group Corp for as much as $40 billion, in a deal set to reshape the global semiconductor landscape.
The Philadelphia SE chip index rose 2.6%. The tech index added 2.4%, more than any other major S&P sector.
Oracle surged 4.3% to near record highs after sources told Reuters that the cloud services firm beat Microsoft in the battle for the U.S. arm of TikTok with a deal structured as a partnership to navigate geopolitical tensions.
Microsoft Corp erased premarket losses to rise 1.7%.
“Wall Street always rewards growth,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
“That’s why these deals are exciting, because if you put two companies together, by definition, you’re going to have inorganic growth, but you’re going to see growth.”
The S&P 500 is coming off of two straight weeks of losses as investors sold heavyweight technology shares that had powered the benchmark index to record highs in a dramatic recovery from its March lows.
On Monday, Amazon.com rose about 1.6% after the online shopping giant said it is hiring 100,000 more workers in its latest job spree for the United States this year – to keep pace with e-commerce demand that jumped during the pandemic.
Apple Inc, Facebook.com and Google-parent Alphabet Inc rose between 1.4%