US stocks rose Monday, kicking off the week amid fresh hope for a coronavirus vaccine and a flurry of potential corporate mash ups announced over the weekend, including reports that Oracle may be forging a partnership with TikTok, the popular China-owned social media platform. Investors were encouraged by Sunday after Gilead reached a $21 billion deal to acquire Immunomedics, Nvidia agreed to a $40 billion deal to buy Arm Holdings from Japan's SoftBank, and Oracle appeared poised to take over TikTok's US operations. Eastern time. The Nasdaq, which includes many tech stocks, rose 2.3%.
The S&P 500 is coming off a two-week slide amid increased volatility in the market as investors turn cautious following a five-month rally for stocks fueled largely by a run-up in big tech companies.
Oracle surged 4.3 per cent 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 pre-market losses to rise 1.7 per cent.
About once a month the market experiences several days or a bit more of investors dropping growth for value, said Tim Ghriskey, chief investment strategist at Inverness Counsel Inc in New York City.
After hitting a record high of US$61.86, shares of Oracle Corp turned lower along with the rest of the technology sector, which closed down 0.75 percent.
Apple Inc, Facebook.com and Google-parent Alphabet Inc rose between 1.4 per cent and 3 per cent.
In early trading on Monday, the Dow Jones Industrial Average was up 266.26 points, or 0.96 per cent, at 27,931.90, the S&P 500 was up 45.18 points, or 1.35 per cent, at 3,386.15 and the Nasdaq Composite was up 214.34 points, or 1.97 per cent, at 11,067.89.
Notably, reports that the AstraZeneca PLC (AZN) said over the weekend that clinical trials for its experimental coronavirus vaccine resumed after trials were paused due to an unexplained illness contracted by one of the participants who was given the vaccine.
Later this week investors will pay attention to the Federal Reserve's last policy meeting before the November 3 US presidential elections. And the stock of Immunomedics more than doubled after the cancer drug specialist agreed to be acquired by Gilead Sciences in a $21 billion deal.
Declining issues outnumbered advancing ones on the NYSE by a 1.05-to-1 ratio; on Nasdaq, a 1.41-to-1 ratio favoured decliners.