U.S. equities closed at records amid optimism over China trade relations and a fresh wave of merger and acquisition activity. The dollar strengthened.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite Indexes reached all-time highs after China said over the weekend that it will tighten intellectual property rules, a move aimed at boosting the chances of a trade deal between the two largest economies. Tech shares led the gains. Charles Schwab Corp. agreed to buy TD Ameritrade Holding Corp., while LVMH purchased U.S. jeweler Tiffany & Co.
“I don’t think we would be seeing these types of deals if the outlook for markets and the economy weren’t favorable,” said Adam Phillips, director of portfolio strategy for EP Wealth Advisors. “This is one additional piece we can look at to see the outlook for markets is a positive one.”