The US stocks on Monday advanced as the Nasdaq composite index moved above the 5,000-mark for the first time in the last 15 years, supported by technology agreements and mixed data pointing to a sluggishly accelerating economy.
The Nasdaq oscillated around the 5,000 milestone after hitting for the first time since March 2000, at the dot.com bubble height. It was encouraged by chipmakers Intel Corp, NXP Semiconductors NV and network equipment maker Cisco Systems Inc following two big announcements of agreements.
NXP shares increased 17 percent to USD 99.35 after it approved to the acquisition of smaller peer Freescale Semiconductor Ltd for creating a firm valued more than USD 40 billion. Freescale shares increased 11.7 percent to USD 40.34.
The US consumer spending dropped for a second month in January.
The Dow Jones industrial average increased 0.69 percent, or 124.27 points, to 18,256.97, the Nasdaq Composite gained 0.71 percent, or 5.38 points, to 4,998.91 and the S&P 500 added 0.47 percent, or 9.84 points, to 2,114.34.
On the NYSE, the declining issues were outnumbered by advancing issues by 1,698 to 1,344 for a 1.26-to-1 ratio. On the other hand, 1,692 declining issues increased and 1,032 dropped for a 1.64-to-1 ratio favoring advancers on the Nasdaq.
The Nasdaq Composite was posting 133 new highs and 28 new lows, while the S&P 500 was recording 54 new 52-week highs and four new lows.