GLOBAL MARKETS-Tech rally leads S&P to record high as Treasury yields dip, dollar softens

(Updates to market close)
By Stephen Culp
NEW YORK, April 8 (Reuters) - A tech rally pushed the S&P
500 to an all-time closing high on Thursday and Treasury yields
extended their pull-back from recent peaks as market
participants digested the U.S. Federal Reserve's vow to stay the
course with its dovish monetary policy.
The Nasdaq led the way, advancing more than 1%, but the
blue-chip Dow's gain was more modest. .N
"It's a little bit of a Fed-driven day going back to their
comments yesterday of rates remaining low for an extended period
of time - we're seeing interest rate-sensitive stocks like
technology benefiting from that," said Jeff Carbone, managing
partner at Cornerstone Wealth in Huntersville, North Carolina.
"There are really no major drivers right now" until earnings
season starts next week, he added.
European stocks closed at record highs on growing optimism
about a global stimulus-driven economic revival and reassurances
from the Fed.
"Europe has not been able to get out of its own way for a
long time," said Jamie Cox, managing partner for Harris
Financial Group in Richmond, Virginia. "It's nice to see it pick
up a bit.
"Now is the time for value stocks, and European indices are
chock full of them," Cox added.
Minutes of the Fed's last policy meeting, published on
Wednesday, showed board members felt the economy was still short
of target and reiterated their accommodative monetary stance.
"The Fed have said they are watching inflation and took the
air out of the situation quite a bit," Cox said. "The market got
what it wanted out of the Fed."
Fed Chairman Jerome Powell expanded on that topic on
Thursday at an International Monetary Fund event, saying that
while the economic reopening could result in a momentary surge
in prices, he expects it to be temporary and it will not
constitute inflation. A report from the U.S. Labor Department showed jobless
claims unexpectedly increased last week, a blemish among a
string of otherwise upbeat recent economic data. The Dow Jones Industrial Average .DJI rose 57.31 points,
or 0.17%, to 33,503.57, the S&P 500 .SPX gained 17.22 points,
or 0.42%, to 4,097.17 and the Nasdaq Composite .IXIC added
140.47 points, or 1.03%, to 13,829.31.
The pan-European STOXX 600 index .STOXX rose 0.58% and
MSCI's gauge of stocks around the globe .MIWD00000PUS gained
0.48%.
Emerging market stocks rose 0.34%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.55%
higher, while Japan's Nikkei .N225 lost 0.07%.
U.S. Treasury yields fell on Thursday, pressured by Powell's
dovish comments and weaker-than-expected initial weekly jobless
claims. Benchmark 10-year notes US10YT=RR last rose 9/32 in price
to yield 1.6244%, from 1.654% late on Wednesday.
The 30-year bond US30YT=RR last rose 13/32 in price to
yield 2.3168%, from 2.336% late on Wednesday.
The dollar dropped to a two-week low against a basket of
currencies, tracking Treasury yields following the surprise rise
in U.S. unemployment applications. The dollar index .DXY fell 0.42%, with the euro EUR= up
0.36% to $1.1913.
The Japanese yen strengthened 0.54% versus the greenback at
109.28 per dollar, while sterling GBP= was last trading at
$1.3733, down 0.01% on the day.
Crude oil prices were little changed as Wall Street's rally
and the soft dollar offset concerns over a big jump in U.S.
gasoline stocks.
U.S. crude CLcv1 fell 0.28% to settle at $59.60 per
barrel, while Brent LCOcv1 settled at $63.20 per barrel, up
0.06% on the day.
Gold prices jumped, scaling a one-month peak as the Fed's
assurances that it will maintain its accommodative policy
weighed on Treasury yields and the greenback. Spot gold XAU= added 1.1% to $1,756.36 an ounce. U.S. gold
futures GCv1 settled up about 1% at $1,758.2.

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