U.S. stocks rallied to a seven-week high while the dollar sank after a weak inflation reading signaled the Federal Reserve won’t need to step up the pace of interest-rate increases.
Chipmakers paced gains in major American equity benchmarks, while rate-sensitive shares added to the bullish mood as the 10-year Treasury yield slipped to 2.97 percent. A gauge of small-cap stocks set a record and emerging-market shares rallied on the more-favorable outlook for global borrowing costs. The dollar fell the most since March 21, lifting commodities. The pound weakened after the Bank of England held interest rates.