U.S. Stocks Cap Third Month of Gains as Fed View Propels Dollar
- S&P 500 posts advance for May despite 0.1% drop Tuesday
- Japanese equity-index futures fall amid rebound in yen
Will Jobs Data Hold the Key for a Fed Rate Hike?
U.S. shares capped a third month of gains, their longest rally since June 2014, while the dollar ended May with its biggest advance in almost two years as speculation mounted that the American economy can withstand higher interest rates as soon as this summer.
While the S&P 500 Index slipped Tuesday, it all but erased a 0.5 percent slide in the last hour of trading, leaving it up 1.5 percent in May. Data showing consumer spending climbed the most in seven years bolstered the case for rate hikes, helping the dollar cap a 3.7 percent jump this month. Yields on two-year Treasury notes, the coupon securities most sensitive to Fed expectations, jumped 10 basis points in May. Gold halted a nine-day slide, while crude oil fell, trimming a fourth monthly advance, its longest climb in five years.