Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, July 21, 2015. Reuters/Lucas Jackson
Wall Street surged Monday following a multi-billion-dollar deal by Warren Buffett’s Berkshire Hathaway that raised optimism over mergers and acquisitions, and weak Chinese data that boosted hopes for fresh stimulus in the world’s No. 2 economy.
Crude oil prices jumped as much as 3 percent after a rally in U.S. gasoline and diesel due to a refinery outage helped crude futures rebound from multi-month lows earlier in the session.
All three major U.S. stock indices jumped more than 1 percent after a $37.2 billion deal by Berkshire Hathaway to buy Precision Castparts showed the M&A boom was alive and well.
Global stock markets also got a lift from hopes that Beijing might take new measures to stimulate the Chinese economy after a report that producer prices in July hit their lowest point since late 2009 and exports tumbled 8.3 percent in the same month.
Expectations of possible restructuring among major shipping firms and in other key sectors helped boost recently battered Chinese stock indices by more than 4 percent.
“The market took their cues from China overnight and the Berkshire deal in another factor driving investor sentiment today,” said Aaron Clark, a portfolio manager at GW&K Investment Management, which oversees about $25 billion.
RATE RISE TIMING
The outlook in China contrasted with solid U.S. jobs data on Friday, which bolstered expectations that U.S. interest rates…