U.S. stocks extended records with an eighth straight gain, the dollar rose to a two-month high and Treasuries dipped as a batch of U.S. data and hawkish Fed speakers strengthened the case for higher rates.
The S&P 500 Index capped its longest winning streak since July 2013, with tech shares pacing gains as the prospect for faster economic growth got a lift from better-than-forecast factory orders. The CBOE Volatility Index closed at a record low in data going back to 1990. U.S. 10-year note yields edged higher, and the dollar pushed its gain in the past month to 2 percent as comments by regional Fed President John Williams reinforced optimism in the economy. The U.S. government releases September jobs data.
In Asian markets, holidays across the region and a lack of major economic data may curb trading. The Japanese yen was little changed after Bank of Japan Deputy Governor Hiroshi Nakaso commented on inflation during a speech in London.
“The data we’ve had has been pretty good and again hawkish better than the inflation data we got with the PCE data last week,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “There’s more re-pricing necessary in bonds, especially considering we’re seeing pretty good economic data that’s definitely going to keep the Fed on course.”
European markets firmed after reports that Catalans were stalling their push for independence from Spain. That sent the nation’s bond yields and equities higher. Minutes from the European Central Bank released showed members discussed how to adjust monetary stimulus next year as policy makers raised concern about the rapid appreciation of the euro.