NEW YORK - September 14, 2010 - Stocks rose for a fifth day, the longest streak for the Standard & Poor’s 500 Index since July, while gold surged to a record and Treasuries gained on speculation the Federal Reserve will purchase as much as $1 trillion in bonds to bolster the economy.

The S&P 500 climbed 0.2% to 1,124.64 at 1:07 p.m. in New York, led by technology companies on speculation of increased buybacks and dividends. Gold futures surged as much as 2.4% to $1,276.50 an ounce and the 10-year Treasury yield slid 7 basis points to 2.68%. The Dollar Index, which gauges the U.S. currency against six major trading partners, slumped 1% as the yen surged to a 15-year high and the Swiss franc touched $1 for the first time this year.

A total of $1 trillion in bond purchases would improve stability in financial markets and boost real gross domestic product by as much as 0.4%, Goldman Sachs Group Inc.’s chief economist Jan Hatzius said. The central bank’s Federal Open Market Committee will meet next week to set policy.

“The Fed has a couple of more bullets in the chamber,” said Michael Nasto, senior trader at U.S. Global Investors Inc., which manages about $2.5 billion in San Antonio, Texas. “There’s expectation of monetary easing through bond purchases. That would be a mild positive for the economy. That explains why stocks and bonds are rising and the U.S. dollar is selling off.”