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S&P 500 Reaches 4-Year High, Treasuries Fall on Bond Plan

U.S. benchmark stock indexes jumped to the highest levels in more than four years and Treasuries fell as the European Central Bank announced a bond-buying plan and reports fueled optimism in the U.S. economy. Spanish and Italian debt surged.

The Standard & Poor’s 500 Index rallied 2 percent to 1,432.12 at 4 p.m. in New York, its best level since January 2008, and the Dow Jones Industrial Average soared to its highest level since December 2007. The euro increased 0.3 percent to $1.2632, a two-month high, while Italy’s 10-year yields fell 25 basis points and the rate on similar-maturity Spanish debt lost 38 basis points, while 10-year U.S. yields increased eight points to 1.67 percent. Oil pared earlier gains while gold futures climbed to the highest price since March.