S&P 500 Jumps Most Since 2013 as Dollar Rallies on Fed Statement

U.S. stocks surged the most since 2013, with the Standard & Poor’s 500 Index erasing about half of its December drop, after the Federal Reserve pledged patience on its first interest-rate increase since 2006. Treasuries sank and the dollar rallied on speculation rates will be boosted in 2015.

The S&P 500 surged 2 percent to 2,012.89 by the 4 pm. close in New York, the biggest one-day gain since October 2013 to reduce the index’s December decline to 2.6 percent. Yields on 10-year Treasury notes climbed eight basis points to 2.14 percent and the Bloomberg Dollar Spot Index rose 0.9 percent as the yen slid. Oil rallied from five-year lows to fuel gains in energy stocks, while the ruble strengthened before Russian President Vladimir Putin holds his annual media conference.