Stocks Rise Most This Year on Economy; Euro Up on Rate Outlook

Stocks rallied, sending benchmark U.S. indexes to their biggest gains of the year, as oil slipped and reports signaled the global economy is strengthening. The euro climbed to a four-month high as the European Central Bank said an interest-rate increase may be needed to fight inflation.

The Standard & Poor’s 500 Index jumped 1.7 percent to 1,330.97 at 4 p.m. in New York, its biggest gain since Dec. 1, and the MSCI Emerging Markets Index increased for a fifth day in its longest rally in two months. The Stoxx Europe 600 Index pared gains amid concern borrowing costs will rise. The euro appreciated 0.7 percent to $1.3961 and German two-year note yields jumped 23 basis points. Oil fell from its highest price in more than two years. Treasuries sank.