U.S. Stocks Rebound, Commodities Rise as Dollar Slips After Fed
Nov. 2 (Bloomberg) -- U.S. stocks rebounded from a two-day slump and commodities rose, while the dollar fell, as Federal Reserve Chairman Ben S. Bernanke said economic growth is likely to pick up and the central bank will use monetary tools if necessary to safeguard the recovery. Treasuries pared losses.
The Standard & Poor's 500 Index climbed 1.4 percent to 1,234.7 at 2:55 p.m. in New York. The Stoxx Europe 600 Index rose 0.9 percent. The Dollar Index slipped 0.3 percent, trimming an earlier drop of 0.7 percent. Treasury 10-year yields added one basis point to 2.00 percent, after jumping 9 points earlier. The euro gained versus 11 of 16 major peers as European leaders prepared to ratchet up pressure on Greece to accept a bailout. Copper halted a two-day drop and oil rose.
Fed policy makers said economic growth strengthened last quarter and refrained from taking additional steps to ease monetary policy. They repeated that "there are significant downside risks" to the outlook and cut 2012 growth forecasts. Fed officials discussed contingency options during the two-day meeting and Bernanke said purchases of mortgage-backed securities are a "viable option" to help the economy.
The S&P 500 fell 5.2 percent during the first two days of the week after Papandreou planned a referendum to allow voters to decide if Greece should accept the bailout, spurring concern the rescue would be rejected and the nation would default on its debt.
To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net Michael P. Regan in New York at mregan12@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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