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imageNEW YORK: US stocks rebounded on Monday from last week's Ukraine-linked setback as fears of a clash with Russia ebbed, with the Dow up 1.1 percent and Nasdaq at a 14-year high.

Markets also got a spark from a brewing bidding war over the discount retail sector by the three "Dollar" chains.

The Dow Jones Industrial Average finished up 175.83 points (1.06 percent) at 16,838.74.

The broad-based S&P 500 added 16.67 (0.85 percent) at 1,971.73, while the tech-rich Nasdaq Composite gained 43.39 (0.97 percent) to 4,508.31.

Family Dollar was in play again just weeks after signing a deal to be taken over by Dollar Tree. Rival Dollar General made a counter-offer worth $9.7 billion, or $78.50 a share, $4 more than Family Dollar's.

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