U.S.

equities rose toward all-time highs as the latest read on the economy
eased concerns about inflation and the Federal Reserve scaling back its ultra-
accomodative policies.

All of the main American stock indexes advanced, with the S&P 500 and Dow
Jones Industrial Average touching records. Ford Motor Co. rallied after a
surprise profit. Facebook Inc. weighed on the Nasdaq 100 after the social-
media company gave a cautious outlook. And Amazon.com Inc. fell in
extended trading after its sales forecast fell short, pulling futures in the
Nasdaq 100 lower.

Stocks in the U.S. jumped after gross domestic product data showed that
consumer spending was strong in the second quarter even as overall growth
trailed expectations. A separate report showed applications for U.S. state
unemployment fell last week, but were still higher than forecast. The data
comes a day after Fed Chair Jerome Powell said officials are moving closer to
when they can start reducing bond purchases but there’s still some way to go
before doing so.

Yields on 10-year Treasuries rose, while the dollar weakened. West Texas
Intermediate crude extended gains past $73 a barrel as U.S. stockpiles
declined.
“The disappointing jobless claims numbers put some fire-power behind
Powell’s comments yesterday, emphasizing that we have a ways to go for the
labor market to recover,” said Mike Loewengart, managing director of
investment strategy at E*Trade Financial. “The miss on GDP only puts a finer
point on the fact that growth may be stalling.”

Meanwhile, the U.S. Senate voted to move ahead with a broad infrastructure
package, after a bipartisan group of senators and the White House reached an
agreement on a $550 billion plan.

LISTEN: Goodhaven Capital’s Larry Pitkowsky discusses the markets with Carol Massar and Tim Stenovec
on Bloomberg Radio.

In other stock moves, Robinhood Markets Inc. had a choppy market debut.
The online trading platform slid as much as 12% before climbing back closer to
its initial public offering price. PayPal Holdings Inc. slid the most since March
after its quarterly revenue missed estimates. Uber Technologies Inc. fell after
SoftBank Group Corp. was said to be selling $2.1 billion of its stake in the ride-
hailing giant in a block trade through Goldman Sachs.
The Stoxx 600 Europe Index closed at its highest level ever after updates from
Royal Dutch Shell Plc and Airbus SE. In Asia, a Hang Seng tech index surged
on a report that China will continue to allow local firms to go public in the U.S.

Bitcoin slipped below $40,000.

Powerful QE Pushing Around Bond Yields, Prices: Dudley

WATCH: Former New York Fed President William Dudley discusses the impact of Fed policy on Treasuries.
Source: Bloomberg

For more market analysis read our MLIV blog.

Here are the main moves in the markets:

Stocks
 Futures on the S&P 500 rose 0.2% as of 4:40 p.m. New York time
 Futures on the Dow Jones Industrial Average rose 0.4%
 The MSCI World index rose 0.8%
Currencies
 The Bloomberg Dollar Spot Index fell 0.4%
 The euro rose 0.3% to $1.1886
 The British pound rose 0.4% to $1.3963
 The Japanese yen rose 0.4% to 109.46 per dollar
Bonds
 The yield on 10-year Treasuries advanced three basis points to 1.26%
 Germany’s 10-year yield was little changed at -0.45%
 Britain’s 10-year yield was little changed at 0.57%
Commodities
 West Texas Intermediate crude rose 1.4% to $73.39 a barrel
 Gold futures rose 1.5% to $1,832.40 an ounce
— With assistance by Andreea Papuc, Akshay Chinchalkar, Ksenia Galouchko,
and Namitha Jagadeesh