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* Nvidia climbs on $40 bln deal for chip designer Arm
* Pfizer, BioNTech expand late-stage COVID-19 vaccine trial
* Oracle surges on partnership with TikTok parent
* Indexes up: Dow 1.2%, S&P 1.3%, Nasdaq 1.6% (Updates to late afternoon)
Sept 14 (Reuters) – U.S. stocks were up more than 1% on Monday afternoon as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism.
Nvidia Corp jumped 5.0% 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 1.9.
Oracle surged 5.0% as the cloud services company said it would team up with China’s ByteDance to keep TikTok operating in the United States, beating Microsoft Corp in a deal structured as a partnership rather than an outright sale.
Merger and vaccine-related news has “really lifted the market,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
He said value-related areas of the market were holding up well, continuing a recent trend. “It leads us to believe the rotation we’ve been seeing out of tech to other parts of the market is likely to continue.”
U.S. stocks are 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.
The Dow Jones Industrial Average rose 364.6 points, or 1.32%, to 28,030.24, the S&P 500 gained 46.15 points, or 1.38%, to 3,387.12 and the Nasdaq Composite added 182.54 points, or 1.68%, to 11,036.08.
All of the S&P 500 sectors were higher, and tech-related heavyweights Apple Inc, Facebook.com and Google-parent