Stocks, Treasuries Rally on Earnings, Deficit Plan; Oil Surges
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Stocks surged, sending the Standard & Poor’s 500 Index to its biggest gain in four months, and Treasuries rallied amid optimism lawmakers were moving closer to a deal that would cut the U.S. budget deficit and avoid default. Oil helped lead gains in commodities and the dollar fell.
The S&P 500 jumped 1.6 percent to 1,326.73 at 4 p.m. in New York, its biggest gain since March 3. The S&P GSCI Index of 24 commodities advanced 1 percent as oil surged 1.6 percent to $97.50 a barrel. Ten-year Treasury note yields lost five basis points to 2.88 percent and the Dollar Index, a gauge of the currency against six major peers, slipped 0.5 percent. Nasdaq-100 Index futures climbed 0.7 percent at 5:12 p.m. after Apple Inc. beat earnings estimates.