US shares jumped on Monday as cyclical stocks buoyed the Dow to a record high and the S&P 500 approached its own peak.
Broad gains were witnessed across Wall Street, with eight of the 10 primary S&P 500 groups climbing. Firms in cyclical sectors such as materials and industrial were some of the day’s highest climbers. But utilities and telecom sectors plunged. Around 77% of the volume of the shares traded on the New York Exchange advanced, as more than 75% of Nasdaq-listed stocks jumped, Reuters reported.
The rally came, even as pro-Russian separatists voted in favor of independence in eastern areas of Ukraine in a referendum the Ukraine government and its Western backers termed illegal. The European Union intends to mount pressure on Russia by imposing additional measures that will target both companies and individuals.
“The vote seemed like a negative, but the violence that many thought would happen didn’t, and at this point, no news is good news when it comes to Ukraine,” said Channing Smith of Capital Advisors.
Internet and biotech firms led today’s rally. Biogen Idec added 4% to $298.12 as TripAdvisor Inc surged 6.5% to $90.07.
The Dow Jones industrial average increased 99.98 points or 0.60% at 16,683.32. The Standard & Poor’s 500 Index soared 15.33 points or 0.82% at 1,893.81. The Nasdaq Composite Index gained 62.69 points or 1.54% at 4,134.56.
Markets also surged amid deals, according to Bloomberg. Pinnacle Foods Inc. added 14% after Hillshire Brands Co. agreed to acquire the firm for about $6.6 billion with debt included. Hillshire dropped 6.4% after the announcement. RadioShack Corp. rose 4.1% after Standard General LP revealed it held more stock in the retailer.
Tesaro Inc soared 18% to $28.33 after the firm announced that its experimental therapy to check nausea and vomiting following chemotherapy met the main objective in a third final stage trial.
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