Dollar Jumps as Fed Minutes Boost June Hike Odds; Bonds Retreat
- S&P 500 bank stocks advance, while utility shares slump
- Japanese index futures signal gains as yen slides on Fed
Most Fed Officials Saw June Rate Hike 'Likely'
The dollar rallied and Treasuries plunged after minutes of the Federal Reserve’s last meeting showed officials discussed raising rates as early as June. U.S. stocks fluctuated before ending little changed.
The greenback jumped the most in six months as the minutes sent odds of a rate increase at the Fed’s June 14-15 meeting to 30 percent, from 4 percent a week ago. A rally of as much as 0.7 percent in the S&P 500 Index petered out as investors sold stocks that provide high dividend yields after the 10-year Treasury rate spiked as much as 11 basis points. Banks rose on speculation that higher borrowing costs will boost profits, while emerging-market assets sank on expectations investors will seek higher returns in the U.S. Oil fell.