U.S. Stocks Extend Gains After Rally as Gold, Oil Tumble

U.S. shares rallied for a second day following the biggest jump since January and gold plunged to a three-month low as lawmakers discussed a potential agreement to extend the nation’s borrowing authority. Treasuries erased early gains while the yen weakened and oil slid.

The Standard & Poor’s 500 Index added 0.6 percent to 1,703.20 at 4 p.m. in New York after jumping 2.2 percent yesterday. The Stoxx 600 Europe Index gained 0.4 percent and the benchmark index for emerging markets extended its two-day advance to 1.9 percent. U.S. 10-year Treasury yields climbed one basis point at 2.69 percent, reversing a four basis-point drop, while the dollar and yen weakened against major peers. Corn slid to a three-year low on concern demand may shrink if the government scales back the biofuel mandate. Gold futures fell 2.2 percent to $1,268.20 an ounce, while oil lost 1 percent on forecasts for rising North American production.