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U.S. Stocks Climb on Oil Rally as Dollar Plunges Most in 7 Years

  • Greenback sinks as services PMI fuels angst over U.S. economy
  • S&P 500 erases loss of 1.6% as WTI surges past $32 a barrel
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Oil at $30: Fundamentals vs. Momentum

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The dollar sank the most in seven years against major currencies as data indicating a slowdown in service industry growth fueled concern over the strength of the U.S. economy. American stocks staged an afternoon rally, erasing earlier losses as crude oil rebounded.

The Bloomberg Dollar Spot Index slid as much as 1.9 percent as a gauge of U.S. services showed expansion had slackened to the weakest pace in nearly two years. The Dow Jones Industrial Average jumped more than 180 points, recouping some of Tuesday’s slump as Exxon Mobil Corp. led a rally among energy producers. U.S. crude surged more than 8 percent, swinging back to gains following its biggest two-day plunge in seven years. The jump in commodities saw Brazil’s Ibovespa rise the most among major indexes.