U.S. stocks rose, with equities rising the most in three months, after Warren Buffett’s Berkshire Hathaway Inc. agreed to buy Precision Castparts Corp. and commodities-related shares rallied.
The Standard & Poor’s 500 Index gained 1.3 percent to 2,104.13 at 4 p.m. in New York, its biggest gain since May.
China’s stocks posted their biggest gain in a month amid speculation the government will accelerate mergers of state-owned enterprises to bolster economic growth. Investors also speculated China will act to prop up growth following a wider-than-expected drop in exports.
The S&P 500 dropped 1.3 percent last week while the Dow posted its longest losing streak in four years, amid a slump in media and biotechnology shares and as Apple Inc. fell into a correction. The S&P 500 has trailed most developed-market gauges this year, while speculators’ appetite for stock-market volatility has reached a nine-year high. The gauge closed Monday 1.3 percent below its May record.
Source : Bloomberg