(MENAFN- Baystreet.ca) S&P at Record, Dow Soars as Powell Renewed at Fed
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Stocks rose on Monday after President Joe Biden picked Jerome Powell to continue to lead the Federal Reserve over Fed Governor Lael Brainard. The move assuaged investors worried about switching central bank chiefs while the country's economy is trying to emerge from the COVID pandemic and battle inflation levels not seen in three decades.
The Dow Jones Industrials leaped 251.61 points to 35,853.59.
The S&P 500 index churned higher 15.51 points to 4,713.47, an intraday record.
The NASDAQ Composite reversed course and lost 92.86 points to 15,964.58.
Powell, a former private equity executive, slashed interest rates to near zero and implemented emergency asset purchases in March 2020 to help backstop the market during the first wave of the COVID-19 pandemic, helping the financial system to remain operational during a sharp slowdown in economic activity.
He also led a landmark re-evaluation of the Fed's inflation targeting framework during the COVID crisis.
Bank stocks and Treasury yields moved higher after the White House announced the Fed decision. Shares of JPMorgan rose 2.7% while Morgan Stanley rose more than 3%. The move higher in rates appeared to take a bite out of some tech stocks, whose future earnings are less attractive to investors when yields are higher.
Elsewhere, Tesla shares rallied, gaining more than 4% after CEO Elon Musk said the electric vehicle maker's Model S Plaid could be launched in China by the spring of 2022.
Moderna shares continued their upward momentum, rising 4.8% in early trading after the FDA last week cleared the company's booster shot for all U.S. adults.
On the downside, Activision Blizzard dropped 2.1% following reports that CEO Bobby Kotick said he would consider resigning if he can't fix the company's culture. That news came following reports that Kotick was aware of sexual misconduct within the organization. The NASDAQ Composite was hurt by declines in Netflix and Etsy.
U.S. markets will be closed Thursday on Thanksgiving Day. The stock market closes early at 1 p.m. ET on Friday.
Prices for 10-year Treasurys plunged, raising yields to 1.59% from Friday's 1.54%. Treasury prices and yields move in opposite directions.
Oil prices regained 60 cents to $76.54 U.S. a barrel.
Gold prices plummeted $34.50 to $1,817.10 U.S. an ounce.
S&P at Record, Dow Soars as Powell Renewed at Fed
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