Wall Street gained overnight, bolstered by Warren Buffett's agreement to buy Precision Castparts as well as a rally in Chinese stocks on bets China's government will add stimulus to boost the economy.
Shares of Precision Castparts rallied, last up 19.2 percent, after Warren Buffett's Berkshire Hathaway agreed to buy the maker of equipment for the aerospace, energy and power industries for US$37.2 billion, including debt.
"I've admired PCC's operation for a long time. For good reasons, it is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports," Buffett, Berkshire's chairman and CEO, said in a statement.
In late trading in New York, the Dow Jones Industrial Average climbed 1.41 percent, the Standard & Poor's 500 Index advanced 1.29 percent, while the Nasdaq Composite Index added 1.28 percent.
The outlook for mergers and acquisitions remains favourable, even with a likely interest rate increase by the US Federal Reserve, which has repeatedly flagged it plans a hike this year.