Stocks jumped on Monday as the year-end "Santa Claus" rally visited Wall Street and investors took the impeachment of President Bill Clinton and the end of airstrikes against Iraq in stride.

The Dow Jones industrial average rose 85.22 points, or 1% to 8,988.85 after spending much of the session above 9,000.

The Nasdaq composite index moved further into record territory, adding nearly 51 points or 2.5% to 2,130.03 on the strength of Internet and biotechnology issues.

Analysts said the end of military action against Iraq offered an early morale boost for the market, while the impeachment came as little surprise.

"With respect to Mr. Clinton's impeachment, I think the market largely ignored it on the view the Senate lacks the votes to convict and some kind of censure compromise will come," said Philip Orlando, chief investment officer at Value Line Asset Management.

In the broader market, advancing issues led declines 1,717 to 1,344 on active New York Stock Exchange volume of 742 million shares.

Among individual issues, Amgen Inc. led the biotech rally, soaring 12-3/16 to 100-5/16 after winning a legal battle for rights to a potentially lucrative treatment for anaemia against Johnson & Johnson. J&J shares fell 2-7/16 to 77-1/16, one of the few weak spots on the Dow.