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Wall Street bounces higher as chip stocks gain


By Sruthi Shankar

(Reuters) - stocks advanced on Monday, with gains in shares of chipmakers and helping Wall Street extend last week's rally that was powered by jobs data.

Gains in Apple, and chipmakers and drove the 500 higher.

rose 2.9 percent following report that was considering a possible bid for the company.

rose 2.2 percent and was the biggest boost to the Dow.

The advances followed a near 2 percent gain for the main indexes on Friday after data showed sluggish wage growth in February, easing concerns about the Federal Reserve moving too fast on interest rate hikes.

"The market was particularly optimistic that wage growth wasn't too hot for fear of inflationary concerns," said Andre Bakhos, at in Bernardsville,

Traders of short-term interest-rate futures kept bets the Federal Reserve will stick to three rate hikes this year.

A month ago, the markets were gripped by fears of higher wages leading to price pressures, triggering a selloff that dragged the main indexes to correction territory.

However, the and the Dow have nearly reclaimed those losses. Rapid gains in have already powered the Nasdaq back to its record levels.

At 9:35 a.m. ET, the was up 0.23 percent at 25,394.24. The 500 rose 0.17 percent at 2,791.32 and the gained 0.25 percent to 7,579.83.

Last week's gains were also supported by Donald Trump's softer stance on his decision to impose import tariffs on and aluminium by exempting and

Investors will pore over the next round of data on consumer prices and due this week for signs of rising price pressure.

Ten of the 11 sectors were higher, led by 0.62 percent gain in consumer discretionary stocks.

jumped 25 percent and was the most traded stock after and specialist said it would buy the for $1.7 billion. Lumentum's shares rose 3.8 percent.

Advancing issues outnumbered decliners on the NYSE by 1,592 to 877. On the Nasdaq, 1,509 issues rose and 860 fell.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 19:48 IST