U.S. Stocks Rally on Spending Bounce as Strong Dollar Hits Crude
- Yield gap between 2-year and 30-year Treasury notes narrows
- Brazil stocks extend world-beating gain as Rousseff on trial
Japan May Stimulate Activity in Quiet Market, Says Dewan
U.S. stocks rallied to near a record high after data showing an increase in consumer spending underscored the strength of the world’s largest economy amid speculation over the outlook for interest rates. The dollar maintained gains, while oil retreated.
The S&P 500 Index rebounded from a three-day slide, and the dollar advanced against most of its major peers. The extra yield offered on 30-year bonds over two-year notes shrank to the least since 2007, indicating traders are betting on higher borrowing costs. Crude slipped amid doubt producers will agree on a deal to stabilize prices when suppliers meet for informal talks next month. Brazil’s Ibovespa extended the world’s biggest advance this year on speculation President Dilma Rousseff will be permanently removed from office.