Stocks in the United States extended their rally with modest gains today.

Stocks moved higher on Wall Street today as the Federal Reserve issued a widely expected interest rate rise and investors welcomed the prospect of a merger in the software industry.

Investors pushed stocks substantially higher today as Wall Street greeted the Oracle-PeopleSoft merger and a climb in retail sales as signs of continued economic improvement.

Telephone company Sprint Corp is in advanced negotiations to buy Nextel Communications for more than $36 billion in a mostly stock deal that would create the No 3 US wireless telephone company, sources familiar with the situation said yesterday.