U.S. stocks extended all-time highs amid corporate results that pointed to resilience in the global economy.
Treasuries and the yen tumbled as speculation central banks will add stimulus sapped demand for havens.
The MSCI All-Country World Index climbed a sixth day, the longest stretch since October, while emerging-market currencies strengthened on higher commodity prices. The Japanese yen slumped on speculation Prime Minister Shinzo Abe is contemplating so-called helicopter money to revive the nation's economy. The pound surged as the Bank of England kept interest rates unchanged in its first decision since the U.K. voted to leave the European Union.
The rebound in equities has added more than $4-trillion in value since June 27 as the U.S. economy showed signs of health and bets increased that central banks will boost stimulus. Investors were further encouraged as the corporate earnings season got off to a strong start with JPMorgan Chase & Co. and Alcoa Inc. in the U.S. exceeding analyst estimates along with Daimler AG in Europe. Riskier assets have also lured money amid the growing pool of negative-yielding bonds worldwide.
"Second-quarter earnings have been widely advertised as weak, so any positive results will help boost the stock market," said Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird, which oversees $110-billion. "We're seeing a worldwide phenomenon of negative interest rates, which is driving money into the equity markets. The path of least resistance at this point is to the upside."
Stocks
The S&P 500 added 0.5 percent in New York, extending a record for a fourth day and on track for the longest stretch of gains since March. The gauge trimmed a 0.8 percent rally, as defensive stocks less tied to growth -- utility, consumer-staple and telephone companies -- slid further. The gains today pushed the benchmark to 20 times reported earnings, the first time the valuation has crossed that threshold since 2009.
The S&P 500 closed up 11.32 points to close at 2,163.75.
The Dow Jones industrial average rose134.3 points, or 0.73 per cent, to close at 18,506.41 while the Nasdaq gained 28.33 points, or 0.57 per cent, to 5,034.06.
Canadian stocks edged higher in a fifth day of gains, putting the equity benchmark on track for its highest close in a year, as an advance among the nation's largest lenders and health care firms offset a decline in miners of precious metals.
The S&P/TSX Composite Index rose 0.14 percent to 14,514.52 in Toronto, with six of 10 main industries in the benchmark gaining. The index is in its longest rally since March, joining a rebound in equities worldwide.
Birchcliff Energy gained 11 per cent, Bank of Montreal was up 0.4 per cent and Valeant Pharmaceuticals added 6 per cent.
The Canadian dollar gained half a cent to 77.53 cents (U.S.).
JPMorgan jumped 1. percent, leading a rally by lenders, after the biggest U.S. bank by assets said second-quarter profit fell 1.4 percent, beating analysts' estimates as fixed-income trading revenue and loan growth jumped.
Injecting a cautionary note into the run-up today, Laurence D. Fink, who runs the world's largest asset manager as chief executive officer of BlackRock Inc., said the current rally in equities may not be justified and won't last unless earnings pick up. "If we don't see better-than-anticipated corporate earnings I think the rally will be shortlived," Fink said in an interview Thursday.
Analysts came into the second-quarter earning season predicting S&P 500 profits will drop by 5.7 percent, which would make it the fifth straight quarterly decline, the longest since 2009.
Commodities
West Texas Intermediate crude oil rose 1.7 percent to $45.53 a barrel, after tumbling 4.4 percent on Wednesday as U.S. data showed crude stockpiles fell an eighth week, the longest declining streak since June 2015.
The LME Index of six base metals rose to the highest since Oct. 15 as nickel climbed on potential supply disruptions and copper advanced on speculation policy makers' efforts to spur economic growth will boost demand for metals.
Gold in the spot market declined 0.8 percent to $1,332.41 an ounce, after gaining 0.7 percent in the last session.
Bonds
The yield on U.S. Treasuries due in a decade rose five basis points to 1.53 percent.
Bloomberg