U.S. Stocks Pare Drop After Tokyo Plunge; Oil Falls, Bonds Gain

U.S. stocks escaped the brunt of a global selloff that sent Tokyo shares to the worst two-day drop since 1987, paring losses as Japanese officials made progress stabilizing damaged nuclear reactors and the Federal Reserve said the economy is improving. Commodities slid and bonds rose.

The Standard & Poor’s 500 Index fell 1.1 percent while the MSCI All-Country World Index slumped 2.3 percent at 4:32 p.m. in New York. Nikkei 225 Stock Average futures traded at 8,970 in Chicago, up from the close of 8,620 in Singapore, after the index plunged 11 percent to 8,605.15 in Tokyo. Ten-year Treasury yields lost five basis points to 3.30 percent. The yen rose 1.1 percent against the euro and dollar amid speculation investors were repatriating foreign funds to pay for Japan’s recovery.