U.S. stocks fluctuated following a rebound in crude prices and energy shares. Treasuries slid while the dollar strengthened, after a jobs report bolstered speculation that the Federal Reserve will raise interest rates this year.
The Standard & Poor’s 500 Index retreated 0.1 percent after the benchmark rallied yesterday. Oil traded near its highest close in eight weeks after data showed U.S. refineries boosted their use of crude and gasoline inventories fell. The dollar advanced against the euro for a fourth day after a private payrolls report showed companies added more workers than projected last month. The yield on the 10-year Treasury note rose to the highest in a month.
Markets are taking cues from the potential for more central-bank stimulus and signs economic pessimism that dominated the start of the year was overdone. The private payrolls report follows data on Tuesday that signaled manufacturing was steadying. Citigroup Inc.’s U.S. Economic Surprise Index, which measures whether data beats or misses estimates, is at the highest level since November. In China, moves such as ruling out the possibility of a one-off yuan devaluation and a new head of the securities regulator are also helping investors win back confidence.
The S&P 500 traded at around 1,977 at 12:43 p.m. in New York, after the benchmark gauge on Tuesday posted its best session in a month. Energy shares and banks were the best-performing groups, while retailers and raw-material companies were the biggest drag on the index. The Chicago Board Options Exchange Index, the gauge of market turbulence known as the VIX, fell a second day after sliding yesterday to the lowest level this year.