M&A Target Stocks Surge in Bet on Wall Street Dealmaking Rebound

A group of US stocks that Citigroup Inc. considers to be acquisition targets is staging an outsize rally, underscoring Wall Street’s renewed optimism that dealmaking will revive along with the economy as tariff worries ease.

The bank’s US M&A Targets Basket has surged 44% since April 8, the day before President Donald Trump announced a pause on tariffs on many countries. It’s the fastest advance on record in such a timespan since pricing for the index, which tracks 40 stocks identified by the bank’s equity-trading strategy desk, began in 2022. It’s also a stark reversal after the gauge plunged from late January through early April on tariff-driven worries.