U.S. Stocks Rally With Gold as Dollar Falls on Fed Rate View

U.S. stocks rose, sending the Nasdaq Composite Index to an all-time high, and the dollar fell as the Federal Reserve signaled it will continue to support the economy even as growth picks up. European equities erased losses amid Greek debt talks.

The Standard & Poor’s 500 Index climbed 1 percent at 12:08 p.m. in New York, 0.5 percent below its May 21 record. The Nasdaq jumped 1.4 percent to surpass its intraday high from March 10, 2000. The Bloomberg Dollar Spot Index dropped 0.4 percent. Ten-year Treasury yields rose three basis points to 2.35 percent. The Stoxx Europe 600 Index added 0.1 percent, reversing a loss of 1.5 percent.

The U.S. central bank yesterday signaled it will raise rates gradually as officials look for more decisive evidence on growth. Core consumer prices rose less than forecast in May, while fewer Americans than estimated filed for unemployment benefits last week. Finance chiefs gathered in Luxembourg in an attempt to resolve a standoff over aid to Greece, while the IMF’s head said the organization is willing to negotiate if Greece makes proposals.

Source: Bloomberg


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