Stocks Reaching Record High While Bonds Add Gains

U.S. stocks surged to a record, while sovereign bonds worldwide extended gains and the dollar slumped as the Federal Reserve’s dovish shift reverberated through global markets. Gold rose to the highest in more than five years.

The benchmark S&P 500 Index pared its all-time high after President Donald Trump tweeted that Iran made “a big mistake” in shooting down a U.S. drone. Crude surged almost 5%. The 10-year U.S. Treasury yield at one point dropped below 2% for the first time since November 2016 on the prospect of easier monetary policy in the world’s biggest economy.

“As the central bank’s dovish messaging continues to drive interest rates lower, it’s inoculating investors from other risks,” said Alec Young, managing director of global markets research at FTSE Russell.

Read the full article at Bloomberg.

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