U.S. stocks jumped on Monday, with the Nasdaq Composite rising to a more-than-13-year high, as Ukraine and Russian officials talked about a potential truce and a round of corporate deals also bolstered sentiment.
The CBOE Volatility Index, a measure of investor uncertainty, fell 4.4 percent to 12.57.
“The largest of the drivers is really a reversal of our concerns on Friday, the alleged news coming out of Ukraine, as those stories are a bit disputed here. And it appears the Kurds are making progress in taking back the dam in Mosul, so the Iraq story too is playing a role here, and that’s why we’re seeing crude off and stocks up,” said Art Hogan, chief market strategist at Wunderlich Securities.
The National Association of Home Builders reported its month index of confidence among those building single-family homes rose 2 points to 55, coming in better than expected.
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“It’s a forward looking survey, and we’ve seen that move in a positive direction for three months in a row. But it’s a B-list piece of economic data, more important are housing-start numbers later in the week,” said Hogan.
Dollar General jumped after the discount retailer offered $8.95 billion for Family Dollar Stores, challenging a bid from Dollar Tree. Monster Beverage fell after Jefferies Group downgraded the stock to hold from buy.
Russia said a dispute over its convoy of humanitarian aid to Ukraine had been settled, but no further progress had been made in discussions between Russia, Germany, France and Ukraine on Sunday.
Sensata Technologies Holding said it would pay $1 billion to acquire the Schrader group of companies, and Ingersoll-Rand said it would purchase Cameron International’s centrifugal compression business for $850 million.
Benchmark indexes were at or near session highs, with the Dow Jones Industrial Average up 154.86 points, or 0.9 percent, at 16,817.77, with 29 of 30 components rising.
The S&P 500 advanced 15.1 points, or 0.8 percent, to 1,970.23, with industrials leading sector gains and energy the sole sector not advancing among its 10 main industry groups.
Climbing to its highest level in more than 13 years, the Nasdaq gained 35.91 points, or 0.8 percent, to 4,500.83.
For every stock falling, more than four rose on the New York Stock Exchange, where nearly 127 million shares traded as of 10:40 a.m. Eastern. Composite volume hit 612 million.
On the New York Mercantile Exchange, crude-oil futures for October deliver fell $1.42, or 1.5 percent, to $93.90 a barrel; gold futures for December delivery shed $8.10, or 0.6 percent, to $1,298 an ounce.
The dollar gained against the currencies of major U.S. trading partners; the 10-year Treasury note yield used to figure mortgage rates and other consumer loans rose 3 basis points to 2.367 percent.
On Friday, U.S. stocks ended the week mixed in below-average trade volume amid news of fresh conflict between Russia and Ukraine.
“U.S. stocks rebounded as markets likely considered that slowing global economic growth will keep interest rates low for some time, and ongoing geopolitical tensions eased somewhat,” E. William Stone, chief investment strategist at PNC Financial Services Group, noted in emailed commentary.