U.S. Stocks Add to Rally as Crude Oil Advances; Dollar Climbs
The S&P 500 extended its rally to the longest since June 2014 as benchmark indexes added to all-time highs, with health-care shares and consumer staples taking a turn pacing gains. Oil powered above $51 a barrel on signs producers are following through with agreed production cuts.
The post-election rally in American equities plowed ahead even as the Federal Reserve looks certain to raise interest rates next week. Makers of household products led gains Friday after lagging behind for much of the post-election rally that’s added more than $1 trillion to the value of U.S. equities. Bank shares pushed gains in the past month to 18 percent.U.S. crude rose before OPEC meets in Vienna with non-member representatives. The dollar headed toward an 18-month high, supported by wagers on higher rates.
Speculation that Donald Trump’s policies will boost the economy enough to withstand the effects of higher interest rates lifted consumer confidence to the most in almost two years. At the same time, the European Central Bank’s pledge to expand its limits on asset purchases to include shorter-dated securities is expected to drive down borrowing costs for banks even though the central bank has announced it will curtail monthly additions after March, and is being interpreted as a buy signal in many quarters of the financial markets.