US stocks were broadly higher Thursday, helped by a rise in prices for crude oil and other commodities.
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The Dow Jones industrial average rose 87 points, or 0.5 percent, to 18,381 as of 2:50 p.m.
The dollar index was last up 0.1 percent at 95.531. The sector component is made up largely of real estate investment trusts, which enjoy certain tax benefits by paying out much of their income as dividends.
After retreating following the Federal Reserve decision to leave interest rates on hold at the September meeting, the dollar remained firmly on the defensive.
In the bond market, benchmark United States yields hit near two-week lows on revived bets the Fed would raise interest rates slowly due to weak economic growth and inflation stuck below its 2% goal. The central bank said risks to its economic outlook are “roughly balanced”. In a recent interview with CNBC, Trump said Federal Reserve Chair Janet Yellen was keeping interest rates low to cater to President Obama and claimed Yellen was political.
The decision caused bond prices to rise and the US dollar to fall against other major currencies, which in turn help boost commodity prices since they are priced in dollars.
Energy companies followed oil prices higher. Marathon Oil rose 14 cents, or 1 percent, to $14.80.
The dollar rose by 1 percent against the Canadian dollar after surprisingly weak inflation and retail sales data that suggested Canada could be facing lower growth and higher unemployment. Verizon Communications rose 48 cents, or 1 percent, to $52.35.
Other commodities also rose, which helped out materials stocks.
Freeport-McMoRan, the mining giant, jumped 44 cents, or 4.2 percent, to $10.98.
METALS: Precious and industrial metals rose broadly. The Nasdaq composite climbed 33 points, or 0.6 percent, to 5,325.
Red Hat rose 6.7 percent to $82.27 after the Linux operating system distributor reported second-quarter revenue and profit that beat market expectations.
It’s happening-again. Stocks are rallying to records and government bond prices are rising, pushing yields toward the lows.
USA benchmark crude rose 98 cents to close at $46.32 a barrel, while Brent crude, used to price worldwide oils, gained 82 cents to close at $47.65 a barrel.
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Rosengren has previously warned about the rapid rise of commercial real estate prices in the United States, which he argues could deepen a downturn if the US economy is hit by a negative shock.
