Wall Street rises at open on M&A activity, vaccine hopes

Futures lifted by M&A activity vaccine hopes

Wall Street's major indexes climbed on Monday on a boost from technology stocks while signs of progress in developing a COVID-19 vaccine and a spurt of multi-billion dollar deals also brightened the mood.

Gains were broad-based, with all of the S&P 500 sectors ending in positive territory and real estate and technology leading gains.

Nvidia Corp jumped 9.0% 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.

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 United States arm of TikTok with a deal structured as a partnership to navigate geopolitical tensions.

In the wake of a mass-scale sell-off wave of the NYSE-listed tech stocks, Nasdaq fell again on Friday, while the benchmark S&P 500 ended the day nearly dithered as early gains in tech stocks had waned in late-afternoon session, which eventually had prompted a weekly decline for all three key USA indices.

Growth stocks, which include many tech names along with others that have benefited from government-imposed lockdowns such as Amazon.com Inc, fell 0.26 percent, while value names edged up 0.54 percent.

As of midnight Eastern, Dow Jones Industrial Average futures were up around 300 points, or 1%, while S&P 500 futures gained 1.2% and Nasdaq-100 futures surged 1.5%.

USA stocks were jubilant at the open on Monday following news that Oracle was lined up to be video-sharing app TikTok's American partner in a potential sale. Tesla Inc's shares rebounded 12.6% after losses last week.


"Just because we shaved 10 or 11 percent off the NASDAQ in three days doesn't mean that is the end of the nervousness and that is kind of where we are right now", Hogan said.

In addition, market sentiment was positively influenced by information that the Trump administration is considering accelerating the use of an experimental COVID-19 vaccine being developed by AstraZeneca (LON: AZN) AZN.L and Oxford University.

Pfizer Inc gained 1.1 per cent after the drug maker and German biotech firm BioNTech SE proposed to expand their Phase 3 pivotal COVID-19 vaccine trial to about 44,000 participants.

The path of least resistance for stocks is volatile and probably a bit lower from here, said Art Hogan, chief market strategist at National Securities in NY.

Later this week, investors will focus on the Federal Reserve's last policy meeting before the November 3 U.S. presidential elections.

Immunomedics Inc's shares more than doubled on Gilead Sciences Inc's $21 billion buyout deal, which is a steep premium to the biotech company's closing price on Friday.

Seattle Genetics gained 14.5% after Merck & Co Inc said it would buy a $1 billion stake in the smaller drugmaker to co-develop and sell its cancer therapy.

Advancing issues outnumbered decliners by a 5.19-to-1 ratio on the NYSE and by a 4.59-to-1 ratio on the Nasdaq. The S&P 500 - a gauge for the health of U.S. retirement and college savings reports - was up 1.7 percent, while the tech-heavy Nasdaq Composite Index was 2.24 percent in the green.

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