NEW YORK — World stock indexes jumped and the Nasdaq hit a record high on Thursday while bonds rallied, a day after the Federal Reserve signaled an increasingly cautious approach to future US rate increases.The dollar fell to its lowest in a week against a basket of major currencies as investors sold the greenback following the Fed’s reduction of longer-term interest rate expectations.The Fed did signal it could hike rates by year-end as the labor market improved further, but cut the number of rate increases expected in 2017 and 2018. It also reduced its longer-run interest rate forecast to 2.9% from 3%. That left investors feeling that any tightening would be glacial at best. Market pricing for a December move rose only a fraction to 59.3% from 59.2%, according to CME Group’s FedWatch tool."The Fed probably appeared less hawkish than what the markets had expected," said Ryan Larson, head of equity trading at RBC Global Asset Management in Chicago. "I think the market continues to b...
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