U.S. stocks jumped on Monday, extending gains from the previous week, on renewed risk-taking sentiment after the Group of 20 pledged to keep economic stimulus in place until a recovery was assured.
Corporate mergers and acquisitions also boosted the market, with General Electric Co
Finance ministers and central bankers of the G20 agreed over the weekend to keep government aid flowing, boosting global stocks while pressuring the dollar as high-yielding and commodity-linked currencies benefited.
The reassurance (G20) is feeding the market and supporting the rally to continue here for some time, said Dan Faretta, senior market strategist at Lind-Waldock in Chicago.
The Dow Jones industrial average <.DJI> was up 120.24 points, or 1.20 percent, at 10,143.66. The Standard & Poor's 500 Index <.SPX> was up 14.54 points, or 1.36 percent, at 1,083.84. The Nasdaq Composite Index <.IXIC> was up 30.58 points, or 1.45 percent, at 2,143.02.
Stocks rose 3 percent last week after ending Friday's session slightly higher, shrugging off government data showing the unemployment rate hit 10.2 percent.
Kraft Foods Inc
Healthcare companies were in the spotlight after the U.S. House of Representatives approved a healthcare reform bill on Saturday that would include a government-run health insurance option to compete with private insurers.
It's very clear that the this is not going to be an easy or short process, said Charles Lieberman, chief investment officer at New Jersey-based Advisors Capital Management, adding that the negative impact on the healthcare sector will be limited.
The Morgan Stanley Healthcare Payor index <.HMO> was up 1.4 percent, while the Amex Pharmaceutical index <.DRG> rose 1.1 percent.
Shares of McDonald's Corp
Sprint Nextel Corp
Oil futures jumped 2.4 percent above $79 a barrel, and gold hit a record high above $1,110 an ounce, as the dollar index <.DXY> slid 1 percent on the outcome of the G20 meeting.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)