U.S. equities rose to all-time highs for a third day with investors counting on the Federal Reserve to stay accommodative as the economy recovers from the coronavirus pandemic.

The S&P 500 and the Nasdaq Composite notched fresh highs, with Facebook Inc. rallying after unveiling a series of tools designed to expand shopping on its social media platforms. The Dow Jones Industrial Average declined for the first time in four days. Salesforce.com Inc. jumped 10 per cent following the close of regular trading after raising its revenue outlook. Treasury yields increased and the dollar weakened.

“It’s pretty remarkable, the risk-on trade, for the past couple of months,” said Michael Reynolds, investment strategy officer at Glenmede Trust Co. “It just seems like a benign day as we sit near the all-time highs.”

Oil rose as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. U.S. gasoline futures rose to the highest level since March on concern over possible fuel shortages.

Futures rise to highest since March as storm threat hits Gulf refineries

In addition to geopolitics and business confidence, investors are focused on vaccine progress as global economies reopen amid fresh outbreaks of the virus. Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the European Union.

“The pattern we’re watching seems to be vaccine clarity means buy the socially distant losers, all of the sectors that have taken a beating since you can’t get together,” said Mike Bailey, director of research at FBB Capital Partners.

Traders are also awaiting Fed Chair Jerome Powell’s scheduled speech on Thursday about the Fed’s long-awaited monetary policy framework review, which has focused on a new inflation strategy.

”If you think about what’s been driving markets, it’s really been the pace of recovery and primarily multiples have expanded due to hyper-loose monetary policy,” Troy Gayeski, co-chief investment officer of SkyBridge Capital, told Bloomberg TV.

Elsewhere, gold traded below US$1,950 an ounce.

Here are some key events coming up:

• Earnings from companies including ICBC, PetroChina, HP Inc., Royal Bank of Canada and Dollar General.
• The U.S. Republican National Convention runs this week.
• The Bank of Korea sets monetary policy and will hold a briefing on Thursday.
• Fed Chair Powell speaks at an event on Thursday.

These are the main moves in markets:

Stocks

• The S&P 500 Index gained 0.3 per cent to 3,443.67 as of 4:01 p.m. New York time, the highest on record.
• The Dow Jones Industrial Average decreased 0.2 per cent to 28,248.75.
• The Nasdaq Composite Index rose 0.8 per cent to 11,466.47, the highest on record.
• The Stoxx Europe 600 Index dipped 0.3 per cent to 369.75.

Currencies

• The Bloomberg Dollar Spot Index decreased 0.3 per cent to 1,171.60.
• The euro increased 0.4 per cent to US$1.1832.
• The Japanese yen depreciated 0.4 per cent to 106.40 per dollar, the weakest in more than a week.

Bonds

• The yield on 10-year Treasuries gained three basis points to 0.68 per cent, the highest in a week on the biggest rise in more than a week.
• Germany’s 10-year yield increased six basis points to -0.43 per cent, the highest in more than a week on the largest increase in almost 12 weeks.
• Britain’s 10-year yield gained five basis points to 0.263 per cent, the highest in almost 11 weeks on the biggest climb in almost two weeks.

Commodities

• West Texas Intermediate crude rose 1.8 per cent to US$43.36 a barrel, the highest in almost six months on the largest advance in a week.
• Gold was little changed at US$1,928.47 an ounce.
• Silver depreciated 0.1 per cent to US$26.52 per ounce, the weakest in more than a week.