S&P, Nasdaq hit record highs after Powell nominations viewed as safe

S&P, Nasdaq hit record highs after Powell nominations viewed as safe

The S&P 500 and Nasdaq hit record highs on Monday after President Joe Biden chose Federal Reserve Chairman Jerome Powell to lead the bank for a second term, with the central bank looking to wind down on pandemic-era stimulus. Planned.

Powell’s nomination, which will see him lead the Fed for another four years, was largely welcomed by investors in hopes of no major changes to the Fed as it guides the economy through the COVID recovery.


The White House said Fed Governor Lyle Brainard, the other top candidate for the job, would be vice president.

Randy Frederick, managing director of trading, said, “Markets such as predictability … while Brainard may be a good option, the markets may not know what to expect from it, although the general consensus was that it means less in the long run.” The rate was Derivatives, Charles Schwab, Austin, Texas.

Financials were the best performers in early trade with a jump of 1.0%.

Wall Street’s major banks rose between 1.5% and 3%, tracking a jump in Treasury yields, as investors priced in a tightening of the Fed’s policy through the first half of 2022. Wells Fargo & Company led the gains among its peers.

“The message is that we are on a course to reduce tapering and we are moving towards higher interest rates, which are likely to increase in the middle of next year, and I think Wall Street has already done that. Most have been digested, said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.

With the Fed’s policy rate-linked futures contracts shifted, money markets now expect the US central bank to raise interest rates by 25 basis points next June versus July.

“This is another confirmation that the Fed has a plan.”

Safe-haven sectors, including real estate and healthcare, were the worst performers in early trade, each falling about 0.6%.

The Nasdaq rose to a second consecutive record high on strong demand from technology stocks. Heavyweights including Amazon, Apple and Meta Platforms rose between 0.1% and 2%.

The tech sector outperformed last week, helping the Nasdaq near the 16,000 level for the first time, as concerns over rising COVID-19 cases in Europe stoked demand for the safe-haven.

Travel and energy stocks, which were among the worst performers last week, also gained.

At 09:51 am, the Dow Jones Industrial Average was up 238.50 points, or 0.67%, at 35,840.48, the S&P 500 was up 33.62 points, or 0.72%, at 4,731.58, and the Nasdaq Composite was up 105.57 points, or 0.66. %, at 16,163.01.

Investors were now looking forward to a range of economic data this week, including IHS business activity readings, personal consumption spending and minutes from the Fed’s latest meeting.

Among other movers, Tesla Inc gained 4.8% after CEO Elon Musk tweeted that the Model S Plaid will “probably” arrive in China around March.

Activision Blizzard slipped 1.1% after a media report that the video game publisher’s top boss, Bobby Kotick, would consider leaving if he can’t fix the culture’s problems quickly.

Advancing issues declined from a 1.72-to-1 ratio on the NYSE. Issues decline in the number of advances to a 1.08-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and seven new lows, while the Nasdaq recorded 56 new highs and 247 new lows.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

                                                    </div><script>!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,'script','https://connect.facebook.net/en_US/fbevents.js');fbq('init','550264998751686');fbq('track','PageView');</script>        ,

—-*Disclaimer*—–

this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by Rojgar samachar team members.

Leave a Reply