Stocks climb ahead of Fed comments

U.S. stocks rose to a nearly four-week high Monday as continuing gains in Treasuries pushed yields further below 2.9 percent, alleviating investor angst that higher rates will accelerate fiscal tightening. Oil climbed with gold.

The S&P 500 Index gained for a third day and the Dow Jones Industrial Average climbed to its highest level in almost a month, buoyed by strength in technology and financial shares. Volume was lower than usual as investors await the first public comments from Federal Reserve Chairman Jerome Powell on Tuesday. The 10-year yield fell for a third straight day, reaching a two-week low. The dollar was little changed.

“There was a lot of talk from various Federal Reserve related folks last week and that provided to a certain extent a sense of calm that we won’t see rates spike in the second half of this year,” said Matt Schreiber, president and chief investment strategist at WBI Investments. “The market freaked out when they thought Jerome Powell might raise rates faster than expected -- his first comments are eagerly anticipated here.”

Powell may help set a new direction for investors at a time when some of the biggest names in markets are at odds over the implications of this month’s surge in U.S. bond yields. Morgan Stanley put out a bullish call on Treasuries Monday, countering warnings on the securities from Goldman Sachs Group Inc. and Warren Buffett.

Overseas, the Stoxx 600 Index reached its highest level in three weeks.