New York Report: US stocks gain after big deals

US STOCKS gained yesterday, rebounding from their worst week in months as large deals boosted optimism but investors remained cautious ahead of an upcoming Federal Reserve policy meeting.

Equities are coming off their biggest weekly decline in nearly four months, a pullback that came on concerns the Fed may begin to wind down the bond-buying stimulus at its two-day policy-setting meeting that ends tomorrow.

Avago Technologies agreed to buy LSI Corp for $6.6bn, while American International Group said it would sell its aircraft-leasing business to AerCap Holdings in a deal valued at about $5.4bn.

The Dow Jones industrial average rose 129.21 points or 0.82 per cent, to 15,884.57, the S&P 500 gained 11.22 points or 0.63 per cent, to 1,786.54 and the Nasdaq Composite added 28.54 points or 0.71 per cent, to 4,029.52.