U.S. Stocks Climb With Oil While Treasuries Fall After Jobs Data
- Improved U.S. outlook boosts bets on Fed rate-hike path
- Crude settles at eight-week high after U.S. gasoline data
Reasons Behind the Rally in Equity Markets
U.S. equities rose a second day as crude oil’s recovery underpinned energy share gains. Treasuries dropped after jobs data reignited speculation that the Federal Reserve will raise interest rates this year, damping currency volatility.
The Standard & Poor’s 500 Index gained 0.4 percent to extend Tuesday’s advance as energy producers jumped to a two-month high. U.S. crude climbed to its highest level since early January as data showed a drop in gasoline supplies and increased use of oil by U.S. refineries. Copper rose to a three-month high as the dollar retreated. Yields on 10-year Treasuries rose to their highest level in a month, while a bond-market measure of inflation expectations climbed a ninth day after a private report on U.S. payrolls showed companies added more workers than economists projected last month.