US stock prices rose yesterday, with the Nasdaq composite touching the 5,000-point mark for the first time in 15 years, while the dollar hit an 11-year high on expectations the Federal Reserve might raise interest rates later this year.
Wall Street kicked off March on a high note after a stellar February, when the benchmark S&P 500 Index registered its best monthly gain since October 2011.
“We are still in a longer-term economic expansion. This bull market still has some room to go,” said Jason Pride, director of investment strategy at Glenmede in Philadelphia.
Asian stocks ended higher after China cut interest rates over the weekend, but European equities slipped from seven-year highs hit on merger activity in the telecom sector. China, which posted its slowest growth in decades in 2014, on Saturday cut its benchmark lending and deposit rates.
Brent crude futures fell more than three per cent in London to below $61 a barrel after Iran said a deal on its nuclear programme could be reached this week if the West lifts sanctions, which could boost the country's oil exports.
Gold slipped from two-week highs as investors cashed in gains tied to upbeat Asian demand.
Expectations the US central bank might end its near-zero interest rate policy as early as this summer remained despite data suggesting the world’s biggest economy was losing some momentum.
In early afternoon trading, the Dow Jones industrial average was up 105.74 points, or 0.58 per cent, at 18,238.44.
The Standard & Poor's 500 Index was up 6.54 points, or 0.31 per cent, at 2,111.04.
The Nasdaq Composite Index was up 23.02 points, or 0.46 per cent, at 4,986.55.
The pan-European FTSEurofirst 300 stocks index ended 0.2 per cent lower. A five per cent fall in Vivendi shares and a seven per cent drop in Greek banks pressured the market and outweighed any beneficial impact of broadly upbeat eurozone data.
Tokyo's Nikkei ended up 0.15 per cent.
Against a basket of currencies, the dollar climbed to its strongest level since September 2003 before retreating.
The greenback was up 0.35 per cent at 120.115 yen, while the euro was down 0.2 per cent against the dollar at $1.1178.
In the bond market, Spanish, Italian and Portuguese yields fell to record lows as investors looked forward to the start of the European Central Bank's quantitative easing programme later this month. ECB policymakers meet in Cyprus tomorrow and on Thursday.