Small-Cap Shares Rally as Treasuries Drop, Oil Gains

U.S. stocks extended all-time highs as smaller U.S. companies rallied amid merger activity. Treasuries fell as Morgan Stanley recommended going “maximum underweight” U.S. debt. Oil jumped and corn prices slumped.

The Russell 2000 Index, consisting of companies with an average market value of about $1.1 billion, added 0.9 percent as of 4 p.m. in New York. The Standard & Poor’s 500 Index rose 0.1 percent, after closing at an all-time high on June 6. The MSCI All-Country World Index added 0.1 percent to within a point of a record. Ten-year Treasury yields rose two basis points to 2.61 percent. A measure of 20 developing-nation currencies advanced a third day after China had the biggest trade surplus in five years. Oil increased 1.7 percent and corn futures tumbled 1.7 percent.