Dollar Slumps While S&P 500 Advances, Europe Bonds Gain

The dollar slid as U.S. business activity shrank for the first time in more than three years and investors bet the Federal Reserve won’t reduce its bond buying program. The Standard & Poor’s 500 Index rose to a record for a second day while industrial metals led commodities lower.

The Dollar Index, a gauge of the currency versus six major peers, fell 0.5 percent for a fourth straight loss, its longest slump since February. The S&P 500 rose 0.2 percent to 1,597.57 at 4 p.m. in New York, capping a sixth straight month of gains. French 10-year yields set a record low of less than 1.70 percent and bonds in Italy, Spain and Portugal rallied. Ten-year Treasury yields traded near their lows of the year. Zinc, copper and aluminum lost more than 1.3 percent to help lead commodities lower.