* U.S. index of top companies up for fourth day
* Treasuries climb and dollar drops
* Oil tops $114 a barrel on Iraq concerns
(Adds Wall St record close, quotes, latest prices)
By Michael Connor
NEW YORK, June 18 Wall Street stocks jumped on
Wednesday, taking the S&P 500 index of top companies to an
all-time record after the Federal Reserve promised to keep in
place low interest-rate policies and forecast the world's
biggest economy would expand moderately.
Treasuries prices also gained, as the dollar added to mild
losses posted ahead of a Fed policy statement and a news
conference by U.S. central bank chief Janet Yellen, who calmed
investor worries she might adopt a more hawkish tone on monetary
"Steady as she goes, with respect to policy," said Kim
Rupert, managing director at Action Economics in San Francisco.
"A lot of the doves want to make sure the recovery is for real
and is in place and (are) still maintaining a very accommodative
Global markets worried that Yellen and the Fed might move
more quickly than anticipated toward unwinding a low interest
rate regime begun in 2008. But those worries appear to have
The S&P 500 gained 14.99 points or 0.77 percent, to
finish at 1,956.98, eclipsing the previous record set on June 9.
The Dow Jones industrial average rose 98.13 points,
or 0.58 percent, to end at 16,906.62. The Nasdaq Composite
added 25.60 points or 0.59 percent, to 4,362.84 as U.S.
equities extended a three-day winning streak
Among the biggest gainers was FedEx Corp, which rose
6.2 percent to $148.95 after hitting an all-time intraday high
of $149.34. Its gains helped push the Dow Jones Transportation
average up 1.5 percent.
Treasury debt traders had been especially worried Yellen
might turn toward hawkish policies.
"There were a lot of people that thought there would be a
lot more mention of inflation there, that there would have been
a more hawkish tone, but on balance it came out fairly dovish,"
said Aaron Kohli, an interest rate strategist at BNP Paribas in
Benchmark 10-year notes gained 17/32 in price to
yield 2.59 percent. Five-year notes rose 11/32 in
price to yield 1.67 percent.
In currency trading, the dollar retreated against the euro
and the yen on the Fed's still-dovish tone, a cut in its
forecast for economic growth and a hint long-term rates could be
lower than previously indicated.
The dollar fell 0.22 percent against the yen at 101.93 yen
, while the euro was up 0.35 percent at $1.3592.
The dollar index reflecting the greenback against six other
currencies dipped 0.3 percent to 80.387.
The risk of a faster U.S. policy tightening was enough to
keep European stocks from hitting new multi-year highs. The
FTSEurofirst 300 index of top European shares slipped
0.02 percent at 1,387.44. A measure of world stock markets
added 0.48 percent.
Brent crude oil rose 86 cents to a nine-month high
at $114.31 as a strike by Sunni militants on a refinery near
Baghdad stoked worries about oil exports. U.S. crude fell
39 cents to settle at $105.97 a barrel, the lowest since June
(Editing by Chizu Nomiyama, Leslie Adler and Dan Grebler)