Wall Street went up after talk of deal between AT&T and T-Mobile saw a sharp rise in telecom stocks. Warren Buffets quotes about his belief in the Japanese market and right now being a great time to buy Japanese shares also affected the Wall Street.

AT&T shares went up by a whopping 2.5 percent in Wall Street, while T-Mobile share price rose by 13.1 percent in the European market. Wall Street didn't show much reaction to the news that sales of US homes had hit record lows.

"The fact that companies are confident to do big deals gets people thinking that the environment may not be too bad, that there is liquidity out there in the market. It opens doors for other, larger M&A deals," commented John Canally, investment strategist from in Boston on the rise of Wall Street.