GLOBAL MARKETS-Wall St's S&P 500 hits fresh peak after Fed

Reuters - UK Focus

* 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 (Frankfurt: HX6.F - news) , June 18 (Reuters) - Wall Street stocks jumped onWednesday, taking the S&P 500 index of top companies to anall-time record after the Federal Reserve promised to keep inplace low interest-rate policies and forecast the world'sbiggest economy would expand moderately.

Treasuries prices also gained, as the dollar added to mildlosses posted ahead of a Fed policy statement and a newsconference by U.S. central bank chief Janet Yellen, who calmedinvestor worries she might adopt a more hawkish tone on monetarypolicy.

"Steady as she goes, with respect to policy," said KimRupert, managing director at Action Economics in San Francisco."A lot of the doves want to make sure the recovery is for realand is in place and (are) still maintaining a very accommodativeposture."

Global markets worried that Yellen and the Fed might movemore quickly than anticipated toward unwinding a low interestrate regime begun in 2008. But those worries appear to havedissipated.

The S&P 500 gained 14.99 points or 0.77 percent, tofinish 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 rose6.2 percent to $148.95 after hitting an all-time intraday highof $149.34. Its gains helped push the Dow Jones Transportationaverage up 1.5 percent.

Treasury debt traders had been especially worried Yellenmight turn toward hawkish policies.

"There were a lot of people that thought there would be alot more mention of inflation there, that there would have beena more hawkish tone, but on balance it came out fairly dovish,"said Aaron Kohli, an interest rate strategist at BNP Paribas (Milan: BNP.MI - news) inNew York.

Benchmark 10-year notes gained 17/32 in price toyield 2.59 percent. Five-year notes rose 11/32 inprice to yield 1.67 percent.

In currency trading, the dollar retreated against the euroand the yen on the Fed's still-dovish tone, a cut in itsforecast for economic growth and a hint long-term rates could belower 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 othercurrencies dipped 0.3 percent to 80.387.

The risk of a faster U.S. policy tightening was enough tokeep European stocks from hitting new multi-year highs. TheFTSEurofirst 300 index of top European shares slipped0.02 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 highat $114.31 as a strike by Sunni militants on a refinery nearBaghdad stoked worries about oil exports. U.S. crude fell39 cents to settle at $105.97 a barrel, the lowest since June11. (Editing by Chizu Nomiyama, Leslie Adler and Dan Grebler)

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