Sept. 26 (Bloomberg) -- U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding following its longest losing streak of the year, and commodities advanced after jobless claims unexpectedly decreased. Treasuries fell.
The S&P 500 climbed 0.3 percent to 1,698.48 at 9:34 a.m. New York time following a five-day slump. The S&P GSCI gauge of 24 commodities gained 0.1 percent, with copper adding 0.9 percent. Ten-year Treasury yields increased two basis points to 2.65 percent after falling for four days. The Shanghai Composite Index decreased 1.9 percent, the Stoxx Europe 600 Index was little changed and Italian 10-year bonds fell for the first time in nine days. Japan’s Topix Index rose 0.8 percent while the yen slipped against all major peers.
Initial jobless claims dropped by 5,000 to 305,000 last week. The government’s final estimate of U.S. growth showed that the economy expanded at a 2.5 percent annualized rate, unrevised from the previous report and signaling the nation was weathering federal budget cutbacks and higher taxes. President Barack Obama and congressional Republicans are debating the U.S. federal budget in a confrontation that risks a government shutdown within days.
"Risk conditions turned slightly more upbeat," analysts led by Vincent Chaigneau, global head of rates and foreign- exchange strategy at Societe Generale SA in Paris, wrote in an investor report today. "Toxic politics in Washington have yet again the potential to disrupt the investment environment. Our base scenario by default is that cooler heads will prevail."
The S&P 500 advanced after closing at the lowest level in more than a week. The index had fallen 1.9 percent over the previous five days after closing at an all-time high on Sept. 18.
The yield on 10-year Treasury notes has fallen from a two- year closing high of 2.99 percent on Sept. 5.
Federal Reserve Bank of Richmond President Jeffrey Lacker said in Stockholm that the size of the Fed’s balance sheet increases the risks and the costs of policy errors. Minneapolis Fed President Narayana Kocherlakota will speak today in Houghton, Michigan, and Fed Governor Jeremy Stein talks on "Yield Oriented Investors and the Monetary Transmission Mechanism" at Goethe University in Frankfurt today.
Japanese Prime Minister Shinzo Abe will announce an economic stimulus package on Oct. 1 at the same time as his decision on whether to raise the country’s sales tax, ruling Liberal Democratic Party tax panel chief Takeshi Noda told reporters today. The nation plans to pledge to promptly start a study on cutting the effective corporate tax rate, Kyodo News reported, without citing anyone.