Another big day in the markets. The Dow Jones and S&P indices both set new all-time highs. The stock markets rallied and industrial metals rose as global reports showed growth in manufacturing and central banks pledged to continue stimulus efforts. The dollar gained against all 16 of its major peers and Treasuries slumped.
The S&P 500 Index jumped 1.25 percent to 1,706.87, topping 1,700 for the first time in its history. The Dow Jones Index was up 128 points to 15628.02. The MSCI All-Country World Index increased 1 percent, after advancing 4.7 percent in July.
The yield on 30-year Treasuries jumped to the highest in two years. But you have to remember to old axe: Bond yields up, bond prices down.
Copper added 1.5 percent and oil rose 2.7 percent to $107.89 a barrel.
European Central Bank President Mario Draghi said the central bank expects rates to remain low for an extended period. The Federal Reserve pledged yesterday to keep buying $85 billion in bonds every month as persistently low inflation could hamper the economy. U.S. jobless claims fell to the lowest in more than five years and manufacturing expanded at the fastest pace in more than two years. A Chinese government survey of purchasing managers unexpectedly rose in July, while a similar gauge for the euro-area also beat forecasts.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury