Dollar Falls, Bonds Gain on Fed Bets; U.S. Stocks Edge Higher
- GDP disappointment sends Fed fund futures tumbling in 2016
- S&P 500 climbs to record, caps fifth monthly advance
Did Kuroda's Radical Policy Knowingly Disappoint?
The dollar tumbled and Treasuries rose after data showing tepid U.S. economic growth dimmed the prospects for higher interest rates this year. The S&P 500 Index capped a fifth monthly gain, while oil rebounded from the precipice of a bear market.
The Bloomberg Dollar Spot Index erased a monthly advance after the U.S. economy grew slower than forecast, sending the odds for a Federal Reserve rate hike by December tumbling to 36 percent. Brazil’s real and South Africa’s rand led gains in emerging markets. That triggered a rebound in Treasuries and gold. The S&P 500 Index claimed its longest run of monthly gains since 2014 as earnings from Alphabet Inc. boosted technology shares. The yen rallied against its 31 major peers after Japan’s central bank stimulus disappointed.