Sept. 16 (Bloomberg) -- U.S. stocks climbed, extending a global advance that sent the MSCI World Index to the highest level in almost a year. Commodities gained amid speculation the economy has returned to growth. Crude oil topped $72 a barrel, and natural gas soared 13 percent. Gold rose to a record close as the dollar slid to its weakest against the euro in almost a year. Treasury two-year notes fell the most in three weeks. Shares of General Electric Co. jumped 6.3 percent and Alcoa Inc. climbed 3.4 percent after a Federal Reserve report showed industrial production increased more than forecast. New York Times Co. and Gannett Co. surged more than 10 percent after a market-research firm said some media companies may benefit from more spending on advertising. “Investors have been embracing risk as they feel more comfortable about the global economy,” said John Carey, a Boston-based money manager at Pioneer Investments, which oversees more than $200 billion worldwide. “There seems to be a better sentiment regarding big companies, such as GE, that were under such a cloud during the peak of the credit crisis.” The Standard & Poor’s 500 Index gained 1.5 percent to 1,068.76, and the Dow Jones Industrial Average added 108.3 points, or 1.1 percent, to 9,791.71. More than six stocks rose for each that fell on the New York Stock Exchange. American Express Co. rallied 3.4 percent after Sandler O’Neill & Partners LP upgraded the shares. Currency Market The MSCI World Index of 23 developed nations has climbed 67 percent since March 9 as the Fed kept its target rate for overnight lending between banks at near zero to unlock credit markets after the bankruptcy of New York-based Lehman Brothers Holdings Inc. a year ago. The S&P 500 has rallied 58 percent over the same period. The dollar declined as the increase in U.S. industrial output encouraged investors to buy higher-yielding assets. New Zealand’s currency was one of the biggest winners among 16 counterparts measured against the yen and dollar as investors were lured to a three-month deposit rate almost 10 times higher than in the U.S. So-called carry trades funded with equal amounts of dollars and yen gained 1.3 percent this week, according to data compiled by Bloomberg. “We are in an environment that is constructive for growth,” said Lauren Rosborough, a currency strategist in London at Westpac Banking Corp. “It is positive for high- yielding, high-beta currencies. We are seeing evidence that cash is moving out of banks.” Oil Inventories The dollar slid 0.5 percent to $1.4729 per euro from $1.4658 yesterday. It reached $1.4737, the weakest level since Sept. 25, 2008. Crude oil rose after the U.S. Energy Department reported that inventories dropped to the lowest level since January. Stockpiles fell 4.73 million barrels to 332.8 million, the weekly report showed. A 2.5 million-barrel decline was forecast, according to the median response of 15 analysts surveyed by Bloomberg News. Imports decreased 2.1 percent to an average 8.9 million barrels a day. “A huge draw in crude is obviously bullish,” said Carl Larry, president of Oil Outlooks & Opinions LLC, a Houston-based energy adviser. Falling imports “may signal that demand outside of the U.S. is stronger than expected,” he said. Crude-oil futures for October delivery climbed $1.58, or 2.2 percent, to $72.51 a barrel on the New York Mercantile Exchange, the highest settlement since Aug. 28. The price has gained 63 percent this year. Natural-gas futures for October delivery rose 44 cents to $3.76 per million British thermal units. Treasuries Ease Gold futures for December delivery advanced $13.90, or 1.4 percent, to $1,020.20 an ounce on the Comex division of the Nymex. Earlier, the price reached $1,023.30, the highest since March 17, when the metal climbed to the record. The equity rally and the industrial-production damped demand for the relative safety of U.S. debt. Two-year notes fell for a fourth session as output at U.S. factories, mines and utilities climbed 0.8 percent last month, more than the 0.6 percent median estimate in a Bloomberg survey of analysts. Hedging with Treasury securities increased as companies issued debt. The government will announce tomorrow the amounts of two-, five- and seven-year notes it will sell next week. “People are pulling money from short-term Treasuries to risky assets,” said Alex Li, an interest-rate strategist in New York at Credit Suisse Securities USA LLC, one of the 18 primary dealers that trade with the Fed. “Stocks are doing very well, so it took the steam from Treasuries, which have been perceived as safe. The front end is also underperforming because we get supply announcements tomorrow.” The yield on the two-year note rose five basis points, or 0.05 percentage point, to 0.99 percent, according to BGCantor Market Data. That’s the most on an intraday basis since it gained seven basis points on Aug. 26. The 1 percent security maturing in August 2011 fell 3/32, or 94 cents per $1,000 face amount, to 100 1/32. Ten-year note yields rose two basis points to 3.47 percent.

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