US stocks advanced, after the Nasdaq Composite Index saw the worst decline in two weeks on April 25, as intensified mergers-and-acquisitions canceled out US measures against Russia over Ukraine.
The standard & Poor’s 500 Index added 0.4% to 1,869.43 as of 9:31 in New York. The Nasdaq Composite went up 0.5%.
The stocks gauge plummeted last week, reversing gains in the final session following increased tensions over Ukraine and a selloff in technology firms’ shares fueled by unimpressive financial results from Amazon.
“Now that we are five years away from the last recession, the corporate sector has become more bullish and wants to put some excess liquidity and cash to work. This could be one of the positive catalysts for equities this year,” Gerhard Schwarz of Baader Bank AG in Munich, Germany told Bloomberg.
Investors are following closely events in Ukraine. The US slapped Russia with additional sanctions, targeting seven officials of the Russian government and 17 firms associated with close allies of Russian President Vladimir Putin in areas of the country’s economy such as banking, energy and infrastructure.
The sanctions that the White House announced will be implemented alongside a set of measures by the European Union, which it will announce on Monday, as the US and allies in the West come together to punish Russia for fueling tension in Ukraine.
A measure of sentiment for technology stocks indicated little signs of panic among investors despite the sharpest fluctuation of the Nasdaq 100 Index in two years.
The Nasdaq has plunged in four of the last five weeks in the middle of fears that increased growth is too slow to match stock valuations. Firms that posted the highest gains in the past five years incurred the heaviest losses.
As reported by Reuters, manufacturer of drugs Pfizer Inc are strategizing on their next move to acquire AstraZeneca Plc after two earlier bids were dismissed.
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