Toronto stocks soared on Monday getting a boost from rising crude prices and major merger deals, including a US$5.4 billion bid for computer chip maker ATI Technologies.

The S&P/TSX composite index closed up 206.83 points, or 1.81%, at 11,625.16.

All but one of the 10 TSX main groups ended higher.

The energy subgroup, which makes up about a third of the main index, jumped 3% as crude oil prices climbed above $75 a barrel continued Mideast worries.

NYMEX September crude rose 62¢ to settle at US$75.05 a barrel.

Shares of EnCana gained $1.66, or 3%, to $55.65.

Gold producers ended 2.91% higher. Shares of Barrick Gold gained 53¢, or 1.7%, to $32.64 after it unveiled plans to buy NovaGold Resources Inc. for US$1.29 billion. NovaGold stock soared $4.40, or 33%, to $17.69.

Technology shares jumped 5.4% as Advanced Micro Devices Inc. said it would buy graphics chip maker ATI Technologies for IS$5.4 billion in cash and stock.

ATI closed up $3.67, or 19.55%, at $22.44.

The Canadian dollar fell 0.21 of a cent to US87.63¢ after Statistics Canada said retail sales fell in May after two months of strong gains, pulled down by lower volumes in the auto, food and beverage sectors.

The junior S&P/TSX Venture composite index edged up 4.63 points to 2,500.61.

On Wall Street, U.S. stocks also rallied, boosted by a big hospital takeover and, stronger-than-expected earnings from major drug companies and gains in energy shares.

HCA Inc., the No. 1 U.S. hospital chain, agreed to be bought by an investor group for about US$21 billion.

The Dow Jones industrial average rose 182.67 points, or 1.68%, to end at 11,051.05. The S&P 500 climbed 20.62 points, or 1.66%, to finish at 1,260.91. The Nasdaq composite index advanced 41.45 points, or 2.05%, to close at 2,061.84.