INTEL Corp has agreed to buy McAfee for $7.68 billion (€5.96bn), its largest acquisition, adding security software to its chipmaking arsenal.

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.

The Nasdaq composite index notched up its longest winning streak in more than three years today after strong gains in factory orders and worker productivity fuelled investor expectations of a rebounding US economy.

US investigators arrested a Minnesota teenager today on charges of unleashing a damaging virus-like infection on the internet, officials said.