Wall Street extended its advance today as investors considered several takeover developments and placed bets ahead of the Federal Reserve’s decision on interest rates.

Wall Street was mixed in an erratic session today after a flurry of merger news failed to erase investors’ concerns that a recent run-up has left US stocks overbought.

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.

Stocks rose smartly in the United States today as stronger-than-expected earnings from FedEx and Morgan Stanley put investors’ inflation fears on the back burner. The Dow Jones industrial average gained more than 100 points.

Losses by a string of miners sent the FTSE 100 Index sharply into reverse today.