(Bloomberg) -- U.S. stocks rose to a record and Treasuries rallied as the Federal Reserve kept interest rates unchanged and reiterated patience on future policy. The dollar fell.
The S&P 500 Index extended its gain into a fourth day and tech-heavy Nasdaq indexes outperformed as the iPhone maker closed in on a $1 trillion market valuation. Weak results from other major companies, including Clorox (NYSE:CLX). and Automatic Data Processing (NASDAQ:ADP), weighed on equity measures. Energy shares tumbled amid an oil selloff.
Policy makers gave no clear signal that their next move would be a hike or a cut, or that any adjustment should be expected at their next meeting in June. The unanimous 10-0 decision left the target range for the benchmark federal funds rate at 2.25% to 2.5%.
“The market is increasing its assessment that the next move by the Federal Reserve is going to be to reduce rates,” Guggenheim Partners Chief Investment Officer Scott Minerd said on Bloomberg Television. “All the commentary on the part of the Fed about the lower trending pace of price increases I think is going to fuel speculation that the Fed is going to cut rates.”
Developments in the trade conflict between America and China were also on the radar, with U.S. Treasury Secretary Steven Mnuchin calling the latest round of meetings “productive.” Negotiations will continue in Washington next week.
Elsewhere, oil tumbled as a report showed U.S. crude stockpiles swelled to their highest levels since 2017 while American production set a new record. Holidays across much of Asia, Europe and Latin America crimped trading volumes.
Here are some notable events this week:
- Companies reporting earnings include: HSBC, Macquarie and Royal Dutch Shell (LON:RDSa).
- The Bank of England sets interest rates Thursday.
- Friday brings the U.S. jobs report: non-farm payrolls are projected to rise by 187,000 in April. Economists expect an unemployment rate of 3.8 percent, with average hourly earnings growth picking up to 3.3 percent.