Mergers push US stocks higher

A series of multibillion dollar acquisitions gave Wall Street a modest advance today although many investors remained cautious ahead of the Federal Reserve’s decision on interest rates later in the week.

Investors were cheered by news from mining company Phelps Dodge Corp. that it will pay $40bn €31.78bn in cash and stock for rivals Inco Ltd. and Falconbridge Ltd., while steelmaker Arcelor SA agreed to a $33bn (€26.22) bid from Mittal Steel Co.