Stocks Set Fresh Highs; Dollar Drops to 2-Year Low: Markets Wrap
- Treasury yields decline after Thursday’s bond market rout
- Japan stocks fall after Abe says he’ll resign; yen strengthens
Jerome Powell speaks during the Jackson Hole economic symposium seen on Aug. 27.
Photographer: Daniel Acker/BloombergU.S. stocks capped the week with fresh highs and the dollar weakened to a more than two-year low as the Federal Reserve’s new inflation approach rippled through global markets.
The benchmark S&P 500 closed at an all-time high for a sixth consecutive trading session, while the Nasdaq Composite also reached unseen levels a day after Jerome Powell signaled that the Fed will stay accommodative for longer through more tolerance toward consumer-price increases. The Dow Jones Industrial Average turned positive for the year. The Stoxx Europe 600 Index retreated as the euro strengthened against the dollar, which posted its worst daily decline in about three months against a basket of its peers. Gold advanced.