Stocks Rise With Bonds, Dollar Falls Before Fed

Stocks rose with Treasuries and the dollar slipped on speculation the Federal Reserve will keep its dovish stance to lift the world’s largest economy from a pandemic-induced recession. The S&P 500 climbed for a fourth day, led by energy producers and banks. Tech shares underperformed. The Dow Jones Transportation Average jumped toward an all-time high after FedEx Corp.’s earnings beat estimates on strong e-commerce demand. Homebuilders climbed as a gauge of industry optimism rose to a record in September.

Fed officials, who recently unveiled a more relaxed strategy on inflation, have an opportunity Wednesday to back up the plan with details as they look to boost the recovery. They’re expected to project rates staying near zero though 2023, reinforcing the message delivered by Chairman Jerome Powell in late August that they will delay tightening policy. The committee, in its final scheduled meeting before the U.S. election on Nov. 3, will release a statement and economic forecasts at 2 p.m. Washington time. Powell will hold a press briefing 30 minutes later.

Stocks

The S&P 500 climbed 0.4% as of 11:09 a.m. New York time.The Stoxx Europe 600 Index advanced 0.1%.The MSCI Asia Pacific Index increased 0.6%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.2%.The euro advanced 0.1% to $1.1859.The Japanese yen appreciated 0.5% to 104.93 per dollar.

Bonds

The yield on 10-year Treasuries decreased two basis points to 0.66%.Germany’s 10-year yield dipped two basis points to -0.50%.Britain’s 10-year yield fell one basis point to 0.205%.

Commodities

The Bloomberg Commodity Index gained 0.5%.West Texas Intermediate crude advanced 2.7% to $39.33 a barrel.Gold strengthened 0.7% to $1,968.62 an ounce.

Stocks Rise With Bonds, Dollar Falls Before Fed: Markets Wrap, Bloomberg, Sep 16