(Bloomberg) -- U.S. stocks rose to fresh records as investor appetite for risk returned after America and Iran stepped back from the brink of war.

The S&P 500, Dow Jones Industrial Average and Nasdaq indexes all closed at all-time highs as the conflict between the U.S. and Iran deescalated. Oil fell below $60 a barrel in New York, gold declined for a second day and the Japanese yen dropped to a two-week low versus the dollar.

The greenback gained against major currencies for a third straight day after jobless claims fell by more than expected, adding to signs of economic strength ahead of the U.S. payrolls report Friday. Ten-year Treasury yields declined following a government auction.

In company news, retail took a hit from signs of poor sales before earnings ramp up next week. Bed Bath & Beyond Inc. slid 19% after results missed analyst estimates, while Kohl’s Corp. also slumped following a disappointing holiday season.

“Things have calmed down a bit and with the market hitting new intra-day highs today it seems investors are willing to buy the very little dip we got due to these geopolitical issues,” said Jennifer Ellison, principal at San Francisco-based BOS. “Markets go up and down despite what happens geopolitically, and in many cases geopolitical issues like this really don’t have a direct economic impact.”

If the relative geopolitical calm holds, it will allow traders to switch focus to the next clue on the health of the world’s biggest economy, which will come with the non-farm jobs report. Adding to sentiment, the partial trade deal between the U.S. and China looks locked in as China’s vice premier will visit Washington next week for a signing ceremony.

Elsewhere, the pound touched its lowest in two weeks after Bank of England Governor Mark Carney said policy makers are debating merits of more monetary stimulus. European and emerging-market shares rose.

Here are some events to watch for this week:

  • The U.S. monthly non-farm employment report is due Friday.

These are moves in major markets:

Stocks

  • The S&P 500 Index gained 0.7% as of 4 p.m. New York time.
  • The Nasdaq 100 Index rose 0.9%.
  • The Stoxx Europe 600 Index climbed 0.3%.
  • Germany’s DAX Index jumped 1.3%.

Currencies

  • The Bloomberg Dollar Spot Index gained 0.1%.
  • The British pound decreased 0.3% to $1.3058.
  • The euro was little changed at $1.1107.
  • The Japanese yen weakened 0.4% to 109.51 per dollar.

Bonds

  • The yield on 10-year Treasuries fell two basis points to 1.85%.
  • Britain’s 10-year yield was little changed at 0.819%.

Commodities

  • West Texas Intermediate crude was steady at $59.59 a barrel.
  • Gold dropped 0.4% to $1,553.40 an ounce.

--With assistance from Todd White.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Sam Potter

©2020 Bloomberg L.P.

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