U.S. stocks increased when Nasdaq closed its 14-year high on Monday while homebuilders' confidence surge as hopes for waning tensions in Russia urge investor to make larger bets on the stock market.

Nasdaq closed at about 4,508 points, which has been the first time in 14 years that the company reached an index that is more than 4,500 points.

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In a statement released by Voya Investment Management market strategist chief Doug Cote, he said that with mergers and acquisitions (M&A) getting stronger, the stock market is also bouncing back

"What you're seeing is defensive investors throwing in the towel and saying, 'I gotta be a part of this,'" Cote said.

The Chicago Board Options Exhange volatility index, which measures the unease of investors, surged 20 percent on Friday, but fell 6.31 percent on Monday.

Homebuilder's stocks, on the other hand, increased following the surge of homebuilder sentiment since June.

The housing sector index of PHLX rose 1.7 percent, brought on by a rebound in stock of major homebuilders, such as the PulteGroup Inc., which surged 2.8 percent at US$18.78, and D.R. Horton Inc., which rose 1.4 percent at US$21.13.

Meanwhile, the geopolitical tension in Russia is still affecting the investors' anxiety in betting on stocks.

As Kurdish military forces broke through the insurgent's stronghold in Iraq, Brent oil reached its 14-month low.

Meanwhile, as oil prices drops, airline stocks have been surging. The stock of United Continental Holdings increased 4 percent to US$47.84 and Southwest Airlines surged 3.6 percent to US$30.82.

As M&A's improve, the stock market is also surging.

Two of S&P 500's top gainers for the quarter were Dollar General and Family Dollar.

Dollar General offered to acquire a Family Dollar which is valued at US$8.95 billion, increasing the stock of Dollar General by about 11.6 percent to US$64.14 and Family Dollars rose 4.9 percent to US$79.81.

In a report released by the BATS exchange data, it stated that nearly 4.5 billion of stocks have been traded in the U.S. platforms.

TagsWall Street, stock exchange, US stock market