S&P 500 index rises briefly to record; trade angst ebbs

Russell 2000 closes at all-time high; dollar keeps sliding.

U.S. stocks climbed, while the dollar and Treasuries retreated as investors spec- ulated the Trump administration would ease trade tensions with China.

The S&P 500 Index capped a fourth day of gains, briefly rising to an intraday record. The Russell 2000 Index closed at a record. The dol- lar extended its slide ahead of low-level trade talks with China. The 10-year Treasury yield rose for first time in three days before a meeting of central bankers later in the week.

“This is an abnormally sen- timent driven market that we’ve had all year, so a new high could cause on the mar- gin some investors to either get nervous or to get bullish,” Max Gokhman, head of asset allocation for Pacific Life Fund Advisors, which manages $40 billion, said in an interview at Bloomberg’s New York headquarters. “I would argue probably more nervousness than bullishness at this point because we’re hitting a new high amidst fail- ing trade talks with China, amidst peaking margins.”

U.S. shares rose Tuesday amid signs that talks between Chinese and American trade representatives may lead to some cooling of rhetoric on the months-long spat. The Trump administration plans to slap tariffs on $16 billion of goods on Friday and China is poised to retaliate.

Elsewhere, the Brazilian real fell to the weakest against the dollar in 21/2 years in the runup to the nation’s most uncertain election in more than 30 years. Turkey’s lira edged higher after two days of declines; the country’s markets are closed for most of this week. Futures in crude oil and industrial metals climbed, as emerg- ing-market stocks and cur- rencies advanced.

These are the main moves in markets:

Stocks

— The S&P 500 Index rose 0.2 percent as of 4:02 p.m. New York time.

— The Russell 2000 Index rose 1.2 percent to an alltime record.

— The Stoxx Europe 600 Index gained 0.2 percent.

— The MSCI Emerging Market Index jumped 1.2 percent to the highest in more than a week.

— Germany’s DAX Index rose 0.4 percent to the highest in more than a week.

— The U.K.’s FTSE 100 Index fell 0.3 percent. Currencies

— The Bloomberg Dollar Spot Index dropped 0.4 percent to the lowest in more than a week.

— The euro increased 0.8 percent to $1.1572.

— The Japanese yen fell 0.3 percent to 110.34 per dollar.

— Brazil’s real dropped 1.4 percent to $4.03, the lowest in more than two years. Bonds

— The yield on 10-year Treasuries gained three basis points to 2.84 percent.

— Germany’s 10-year yield gained three basis points to 0.33 percent, the highest in more than a week. Commodities

— Gold rose 0.3 percent to $1,193.63 an ounce.

— West Texas crude rose 1.3 percent to $67.32 per barrel.

— LME copper gained 0.9 percent to $6,046.50 per metric ton, the highest in more than a week.