U.S. Stocks Climb With Bonds, Crude as Dovish Fed Sinks Dollar
- Fed holds steady on rates, see slower path for increases
- Weaker greenback fuels commodity share gains as banks fall
Janet Yellen's Statement in Two Minutes
The Federal Reserve’s signal that interest rates won’t rise as fast as officials previously forecast propelled U.S. stocks to their highest level this year, sparking a rally in Treasuries, while sinking the dollar.
Commodity shares drove the Standard & Poor’s 500 Index’s first day of gains this week, reducing its retreat this year to less than 1 percent after the Fed pared back the number of rate increases it anticipates enacting in 2016. Financial shares fell, however, as lower borrowing costs damp banks’ profit prospects. Emerging-market assets reversed declines, the Bloomberg Dollar Spot Index had its biggest drop since Feb. 3, and yields on two-year Treasury notes fell by the most in five weeks. U.S. crude oil surged 5.8 percent.