Treasuries rallied, while the dollar slumped after data showing anemic expansion in U.S. services industries bolstered speculation that the Federal Reserve will keep interest rates lower for longer. The Nasdaq Composite Index climbed to a record high.
U.S. bond yields fell across maturities and the greenback dropped against most of its major peers as traders pared bets on a September hike from the Fed to 24 percent, according to futures data compiled by Bloomberg. Gauges of both developed and emerging-market shares rose to their highest levels in at least a year. The dollar’s retreat boosted the allure of commodities, spurring gains in gold and a rebound in New York-traded crude oil.