* MSCI World Index up 1.2%; STOXX Europe 600 up 1%
* Wall St extends recovery at the end of volatile week
* Fed Governor Waller signals policy to stay accommodative
* Global asset performance http://tmsnrt.rs/2yaDPgn
By Koh Gui Qing and Simon Jessop
NEW YORK/LONDON, May 14 (Reuters) - U.S. stocks extended
their recovery on Friday as investors set aside inflation
worries and bought shares hammered by the week's volatility,
with the shift back into riskier assets dragging on the dollar.
The bounce in U.S. equities was in step with gains in global
stocks, as investors heeded assurances from the U.S. Federal
Reserve that there would be no imminent move to tighten monetary
policy, and reduce the gush of cash that has propelled financial
markets higher.
By early morning, the Dow Jones Industrial Average .DJI
was up 0.7%, the S&P 500 .SPX climbed 1.1%, and the Nasdaq
Composite .IXIC climbed 1.7%.
In keeping with gains across global equities, the MSCI World
Index .MIWD00000PUS , which tracks 50 markets, jumped 1.2%.
"Our 12-month target for the S&P 500 is 4,300, which
represents 15% return," said Arthur Hogan, chief market
strategist at National Holdings Corp, adding that investors
should focus on building a diversified portfolio.
Mega-cap growth stocks, which have been beaten down this
week on concerns over their lofty valuations, led gains in early
trading with Apple Inc AAPL.O , Amazon.com Inc AMZN.O and
Microsoft Corp MSFT.O gaining about 1% each and Tesla Inc
TSLA.O adding 2%. .N
After fears of rising prices burst into the fore this week
and spooked markets, Fed official Christopher Waller signalled
on Thursday that rates would not rise until policymakers either
see inflation above target for a long time, or a situation of
excessively high inflation. That appeared to calm markets, for now.
The U.S. dollar dropped as risk appetites recovered and the
prospect of sooner interest rate hikes, which burnishes the
currency's appeal, faded. Against a basket of six major
currencies, the U.S. dollar index =USD shed 0.41% to 90.374.
Data released on Friday that showed U.S. retail sales
unexpectedly stalled in April as the boost from stimulus checks
wore off, further bolstered arguments that the economic recovery
was far from roaring, and that rate hikes may be some time off.
Indeed, benchmark 10-year Treasury yields US10YT=RR dipped
following retail sales figures to stand at 1.6454%.
Pull-backs in the dollar and Treasury yields lifted bullion
prices, with spot gold XAU= up 0.5% at $1,836.31 an ounce.
Oil prices also jumped as they clawed back some of the
losses seen the previous day. O/R
Brent crude LCOc1 was up 1.7% at $68.19 a barrel, while
U.S. West Texas Intermediate crude CLc1 was up 1.6% at $64.84
a barrel.
In cryptocurrencies, bitcoin BTC=BTSP recovered to trade
above $50,000 on Friday, jumping 3.1% from a 2-1/2-month low hit
the previous day.
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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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(Editing by Marguerita Choy and Mark Heinrich)