Investing.com - A rally in the technology and biotechnology sectors that began on Friday carried over into Monday and sent broader stock indices rising at the closing bell, with the Dow Jones Industrial Average and the S&P 500 hitting record highs.
At the close of U.S. trading, the Dow 30 rose 0.68%, the S&P 500 index rose 0.97%, while the NASDAQ Composite index rose 1.77%.
Technology and biotech shares have taken a beating in recent sessions, as investors had viewed the sector as too frothy, the beneficiaries of ultra-loose monetary policies and Federal Reserve stimulus programs that are tapering now and likely due to wrap up sometime this year.
By Friday, investors felt such momentum shares had fallen too far and jumped in from the sidelines to snap up attractive buys, with robust gains extending into Monday trading.
Mergers and acquisitions news fueled the rally as well.
Hillshire Brands Company (NYSE:HSH) said it planned to acquire Pinnacle Foods for $6.6 billion, while pharmaceutical giant Pfizer Inc (NYSE:PFE) continued working on its plans to buy Astrazeneca Plc (LONDON:AZN) for $106 billion. Pfizer's head of research said earlier the deal won't affect drug research.
Elsewhere, Allergan Inc (NYSE:AGN) rejected an unsolicited offer from Valeant Pharmaceuticals (NYSE:VRX) International on the grounds the proposal undervalued the company.
Equities largely ignored events in Ukraine, even as fears persisted that U.S. recovery could hit a pothole if the crisis in Ukraine escalates further, as many U.S. businesses are heavily exposed to Europe.
Pro-Russian separatists claimed victory in a weekend referendum on self rule in the eastern Ukrainian city of Donetsk, which stirred concerns that the country is sliding closer to civil war.
The vote has been condemned by Ukraine’s government and the West, which has threatened to hit Russia with fresh sanctions.
Leading Dow Jones Industrial Average performers included General Electric Company (NYSE:GE), up 1.65%, Nike Inc (NYSE:NKE), up 1.61%, and Goldman Sachs, up 1.49%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 0.79%, Verizon, down 0.67%, and Johnson & Johnson (NYSE:JNJ), down 0.36%.
European indices, meanwhile, finished higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.62%, France's CAC 40 rose 0.37%, while Germany's DAX rose 1.26%. Meanwhile, in the U.K. the FTSE 100 rose 0.55%.
On Tuesday, the U.S. is to produce data on retail sales, as well as reports on import prices and business inventories.