U.S. stocks climbed, with the Standard & Poor’s 500 Index posting a fifth quarterly gain, as Federal Reserve Chair Janet Yellen signaled continued monetary support and tensions appeared to ease in Ukraine.
Treasuries fell for the first time in three days and stocks gained after a rise in consumer spending boosted speculation that economic growth would be fast enough to allow the Federal Reserve to keep reducing stimulus.
Treasuries fell while the dollar snapped a five-day slump as growth in consumer spending boosted speculation the Federal Reserve will continue to reduce stimulus. U.S. stocks pared early gains, while industrial metals rose amid speculation China will do more to support growth.
Currencies of three major commodity-producing nations including Australia rose to the highest level in five months amid speculation China will add monetary stimulus, boosting demand for energy and materials.
Federal Reserve Bank of Philadelphia President Charles Plosser, who votes on policy this year, said recent encouraging economic data isn’t enough to change the pace of the central bank’s asset purchases.