By Lewis Krauskopf
NEW YORK (Reuters) - The U.S. dollar rose on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the U.S. Federal Reserve, while world stocks climbed as a heavy week of corporate earnings also kicked into gear.
Wall Street's main indexes erased losses from the start of the session to end solidly positive. The U.S. two-year Treasury yield rose to its highest level in nearly a decade, with the yield curve at its flattest in nearly 11 years.
In testimony, Fed Chairman Jerome Powell said he sees the United States on track for years more of steady growth.
"He reiterated the view of the economy as being strong, growing at a solid pace with recent inflation data as more or less encouraging," said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.
Powell was challenged in a congressional hearing by senators worried the Trump administration's trade policies were already damaging businesses.
Concerns over a global trade dispute have roiled markets over the past few months. But in written testimony to the Senate Banking Committee and in his response to questions about a possible "trade war," Powell largely discounted the risks.
"He basically completely dismissed any concerns about a trade tariff war," said Boris Schlossberg, director of FX strategy at BK Asset Management in New York.
The Dow Jones Industrial Average <.DJI> rose 55.53 points, or 0.22 percent, to 25,119.89, the S&P 500 <.SPX> gained 11.12 points, or 0.40 percent, to 2,809.55 and the Nasdaq Composite <.IXIC> added 49.40 points, or 0.63 percent, to 7,855.12.
As a busy week of corporate earnings began, Netflix Inc
The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.26 percent, helped by Powell's testimony, amid a batch of mixed company updates.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.18 percent.
The dollar index <.DXY>, tracked against a basket of major currencies, rose 0.47 percent, with the euro
Sterling dropped to a four-month low against the euro
Benchmark U.S. 10-year notes
The spread between two-year and 10-year Treasury yields
Crude oil prices steadied after falling steeply on Monday as the focus turned to falling inventories in the United States and further output constraints in Venezuela and Libya.
(Additional reporting by Getrude Chavez-Dreyfuss and James Thorne in New York and Sruthi Shankar in Bengaluru; Editing by Bernadette Baum, Susan Thomas and Bill Berkrot)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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Updated Date: Jul 18, 2018 03:05:15 IST