U.S. stocks rose as traders parsed economic data and awaited an address by Federal Reserve Chairman Jerome Powell. Treasuries fell.
The S&P 500 Index extended gains into a second day as a report signaled labor-market strength. Benchmark 10-year yields climbed after Fed Bank of Kansas City President Esther George said the U.S. doesn’t need lower rates. Most European bonds fell as a gauge of German manufacturers reinforced recession concern and European Central Bank minutes showed officials were worried that investors would lose faith in their ability to revive inflation. The British pound jumped amid optimism that a Brexit deal can be reached.
Financial markets have been volatile amid concern over global economic weakness and renewed U.S.-China trade tension. Minutes from the Fed’s July meeting showed Wednesday that officials viewed their cut last month as insurance against too-weak inflation and the risk of a deeper slump in business investment. Analysts expect Powell to suggest the central bank is ready to reduce rates further when he delivers his speech in Jackson Hole Friday.