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Corporate dealmaking is boosting investors’ hopes for a recovery in the economy.

Stocks jumped Monday after Abbott Laboratories said it would buy the pharmaceutical business of Belgian chemicals maker Solvay for $6.6 billion and Xerox Corp. agreed to acquire Affiliated Computer Services for about $6.4 billion.

All major indexes rose more than 1 percent, including the Dow Jones industrial average, which added 120 points.

The takeover moves are a welcome sign that businesses have enough faith in a recovery in the economy to pursue acquisitions. In the past year, companies grew so worried about the economy that they were hesitant to part with cash and often had trouble lining up financing.

The market’s rise follows its worst week since early July. The rally stalled following disappointing housing and manufacturing data.

In midmorning trading, the Dow rose 119.19, or 1.2 percent, to 9,784.38.

The broader Standard & Poor’s 500 index rose 15.18, or 1.5 percent, to 1,059.56, and the Nasdaq composite index rose 36.27, or 1.7 percent, to 2,127.19.

The Dow fell 1.6 percent last week, while the S&P 500 index lost 2.2 percent.

Bond prices were mixed Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was flat at 3.32 percent from late Friday. Hard money training