Mergers keep stocks up again

U.S. stocks extended gains following a spate of mergers and acquisitions while the dollar climbed to the strongest level this year. Crude rose past $70 a barrel before pairing gains.

The S&P 500 Index increased to a two-week high, led by oil and tech stocks. The Stoxx Europe 600 Index climbed, though trading volumes in the region were lighter than usual thanks to a U.K. holiday. The euro weakened as 10-year Treasury yields fluctuated near 2.95 percent. A gauge of U.S. energy shares touched the highest since February.

“Oil might not get much higher than it is right now, but this move from under $40 at one point, it’s going to start showing up in very strong financial performances,” said Ernesto Ramos, the head of equities for BMO Asset Management.

Mergers and acquisitions helped boost investor sentiment Monday, with Blackstone Group LP agreeing to buy Gramercy Property Trust in a cash deal valued at $7.6 billion, Nestle SA spending $7.15 billion for the right to market Starbucks Corp. products and Elliott Management Corp offering to buy Athenahealth Inc. for $6.5 billion.

Geopolitics remain in focus this week. President Donald Trump said he’ll announce Tuesday whether the U.S. stays in or pulls out of the Iran nuclear deal, which could set the direction for oil prices. Earnings season continues, and on the economic front traders will watch out for an expected acceleration in U.S. consumer prices.

Elsewhere, investors are closely following emergingmarket assets after many extended their losses last week. Developing-nation stocks edged higher and currencies were weaker. Both Turkey’s lira and its equities retreated. Argentina’s peso seemed to stabilize following a tumultuous week of unscheduled central bank interest-rate increases.