New York: U.S. stocks climbed but other major world equity markets were little changed on Thursday ahead of a widely expected interest rate hike by the U.S. Federal Reserve next week, while the dollar rebounded from the previous day`s losses.
Oil prices fell to near seven-year lows and overall markets were more subdued as investors looked ahead to the Fed`s Dec. 15-16 policy meeting.
European shares steadied after touching a two-month low, with retailers and technology firms under pressure as commodity shares stabilized.
U.S. crude fell as worries over a global glut persisted and prices were seen as vulnerable to further weakness in the run up to year-end.
Brent crude was last down 0.8 percent at $39.81 a barrel. U.S. crude was last down 0.8 percent at $36.85 per barrel.
"People are focussed on two things right now: they’re looking at commodity prices, they’re looking at interest rates, and they`re tying to figure out how that is going to impact growth heading into next year," said Bryan Novak, portfolio manager at Astor Investment Management in Chicago.
MSCI`s all-country world equity index, which tracks shares in 45 nations, was last up 0.06 percent.
The Dow Jones industrial average rose 127.18 points, or 0.73 percent, to 17,619.48, the S&P 500 gained 11.78 points, or 0.58 percent, to 2,059.4 and the Nasdaq Composite added 32.53 points, or 0.65 percent, to 5,055.40.
Europe`s broad FTSEurofirst 300 index was last down 0.2 percent, at 1,428.08.
The dollar rose as markets refocused on the expected rate increase from the Fed, moving up from one-month lows against the euro and yen. The dollar index, which tracks the greenback versus a basket of six currencies, was last up 0.56 percent, at 97.898.
"You are seeing people become more convinced that the Fed is going to move on autopilot," said Karl Schamotta, director of FX strategy and structured products at Cambridge Mercantile Group in Toronto.
U.S. long-dated Treasury debt yields edged lower in thin trading, weighed down by tumbling oil prices, which suggested inflation would remain benign.
Benchmark 10-year Treasury notes were last down 1/32 in price to yield 2.225 percent. U.S. 30-year yields were up 8/32 in price to yield 2.96 percent.
Spot gold prices fell slightly, dropping 55 cents to $1,072.25 an ounce.
