Stocks climbed and bonds tumbled as data on retail spending and the labor market underscored the strength of the world’s largest economy, allaying fears the Federal Reserve would be risking a deeper slowdown.
As economic jitters abated, equities extended a rebound from last week’s meltdown into a sixth straight session. The S&P 500 rose about 1.5%. Walmart Inc. — a barometer of growth — jumped on a solid outlook. Treasury yields surged, with the move led by shorter maturities. Data showed retail sales beat estimates while jobless claims hit the lowest since early July. Swap traders further reduced bets on aggressive Fed easing.