(Bloomberg) -- U.S. stocks pushed to session highs in afternoon trading, with Wall Street parsing the latest earnings and looking on as Treasury Secretary nominee Janet Yellen’s confirmation hearing begins.The S&P 500 Index rebounded from Friday’s selloff after a three-day weekend that brought little by means of fresh macro news. Ten-year Treasury yields climbed back to 1.1% and the dollar weakened. Crude oil and emerging markets also advanced. Goldman Sachs Group Inc. turned lower even after reporting that profit more than doubled. Bank of America Corp. shares slipped as investors were disappointed by weakness in fixed-income trading. General Motors Co. rose to a record after Microsoft Corp. invested in its self-driving car startup. Netflix Inc. reports results after markets close.Yellen began testifying before the Senate Finance Committee at 10 a.m. in a discussion that includes President-elect Joe Biden’s $1.9 trillion Covid-19 relief plan. Yellen told lawmakers that low borrowing costs mean it’s time to “act big.”Hong Kong Stocks at 20-Month High as Record China Cash Floods InThe market moves on Tuesday show that investors are coming back to the reflation trade, betting that the incoming U.S. administration will use its legislative firepower to propel economic growth. Biden stimulus package includes measures like a minimum-wage hike and substantial expansion in family and medical leave -- programs that have already triggered Republican opposition.“Yellen is a positive,” said Mohit Kumar, strategist at Jefferies International. “We should have greater co-operation between the Fed and the Treasury, with both the monetary and fiscal policy working together and supportive. This is a good backdrop for risk sentiment.”The euro strengthened after data from Germany’s ZEW Institute showed investors are growing more confident in the economic recovery. The European Union is also expected to unveil a plan on Tuesday to strengthen the international role of the single currency.The blueprint will outline how the region can fortify its economic and financial resilience by bolstering the single currency’s architecture and through growing markets like green finance, according to a draft of the plan seen by Bloomberg.In Asia, Hong Kong stocks closed at the highest level since May 2019. A spending spree by mainland investors is powering gains, lifting the Hang Seng Index up 2.7% on Tuesday.Signs suggest that mainland buying will continue, with investors shifting out of A shares to buy those listed in Hong Kong. The benchmark Hang Seng Index is still cheaper than the Shanghai Composite gauge in terms of price-to-earnings multiples.These are some key events coming up in the week ahead:Earnings come from companies including Morgan Stanley, Procter & Gamble, Intel, and Netflix.Joe Biden takes office as U.S. president on Wednesday.Policy decisions are due Wednesday from central banks in Brazil, Malaysia and Canada. The Bank of Japan and the ECB deliver decisions Thursday.Here are the main moves in markets:StocksThe S&P 500 Index jumped 0.9% as of 1:16 p.m. in New York.The Stoxx Europe 600 Index lost 0.2%.The MSCI Asia Pacific Index increased 1.2%.The MSCI Emerging Market Index increased 1.5%.CurrenciesThe Bloomberg Dollar Spot Index declined 0.2%.The euro climbed 0.4% to $1.212.The British pound increased 0.3% to $1.3625.The Japanese yen weakened 0.2% to 103.88 per dollar.BondsThe yield on 10-year Treasuries climbed one basis point to 1.10%.The yield on two-year Treasuries slipped to 0.13%.Germany’s 10-year yield advanced one basis point to -0.526%.CommoditiesWest Texas Intermediate crude advanced 0.9% to $52.84 a barrel.Gold futures added 0.6% to $1,840.60 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.