U.S. Stocks Fluctuate With Crude, Treasuries Weaken Before Fed

  • S&P 500 climbs back above 2,000 as energy stocks reverse
  • Gas slides to 14-year low on forecast for warmer weather

Deep Dive: When the Tide Goes Out

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U.S. stocks rallied amid crude oil’s rebound from a six-year low, while Treasuries retreated as concern eased that a rout in commodities and high-risk debt will prevent the Federal Reserve from raising interest rates as anticipated.

The Standard & Poor’s 500 Index reversed a drop to its cheapest level in two months with U.S. crude edging back above $36 a barrel as traders bought back some of their record bearish bets against the commodity. Yields on 10-year Treasuries climbed from a six-week low and emerging-market stocks sank as the odds of a Fed rate hike Wednesday held above 75 percent. An exchange-traded fund that tracks junk-rated corporate debt fell to a six-year low amid a rout that has forced at least three credit funds to wind down.