U.S. stocks advanced, paring the losses they have posted earlier in the session, and, at the same time, commodities gained as Ben Bernanke announced that the Federal Reserve is ready to resort to further easing if the unemployment continues to remain elevated. The U.S. dollar pared some of the gains it had posted earlier as Treasuries moved lower. The Standard & Poor’s 500 Index advanced 0.5% to 1,359.95 after declining around 0.6% in the first hour of the trading session. The Dollar Index, an indicator of the performance of the U.S. currency against six major counterparts, added 0.2% after trading with a gain of 0.6% at one point. Yields on the benchmark 10-year Treasury added two basis points to 1.49%, while wheat, fuels and corn were among the biggest gainers in the S&P GSCI Index, increasing its winning streak to a fifth consecutive session , its longest rally in 11 weeks. U.S. equities dropped shortly after the markets opened as the Fed Chairman’s testimony showed the central bank is not planning to use any monetary stimulus measures to boost growth at this point. Stocks pared their losses as Ben Bernanke indicated that inflation is not an issue at the moment and that he is concerned with the sluggish growth of the largest economy in the world.
