Skip to content
Subscriber Only

Stocks Jump as Dollar Tumbles on Tame Inflation: Markets Wrap

  • Sterling drops with kiwi as U.S. Treasury yields slip
  • U.S. small caps set record high as emerging markets advance
Video player cover image
Brian Belski of BMO Capital Markets say everyone is infatuated with calling the end of the bull market. (Source: Bloomberg)
Updated on

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.