Connect with us

Hi, what are you looking for?

The Smart Citizen Report

BREAKING NEWS

S&P 500 at record high as banks rally on Powell nomination

(C) Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. December 28, 2016. REUTERS/Andrew Kelly/File Photo

By Ambar Warrick and Devik Jain

(Reuters) – The S&P 500 hit a record high on Monday after President Joe Biden picked Federal Reserve Chair Jerome Powell to lead the central bank for a second term, with Wall Street lenders rallying on the prospect of interest rate hikes in 2022.

But the Nasdaq lagged its peers, falling from record highs as rising Treasury yields weighed on major technology stocks.

Powell’s nomination was largely welcomed by investors hoping for no big changes in the Fed as it guides the economy through a post-COVID recovery. The central bank is set to herald a return to pre-pandemic policy by end-2022.

Fed Governor Lael Brainard, who was the other top candidate for the job, will be vice chair, the White House said.

“Markets like predictability … while Brainard may have been a fine choice, the markets would not know what to expect from her even though the general consensus was that it meant lower rates for longer,” said Randy Frederick, managing director of trading and derivatives, Charles Schwab (NYSE:SCHW), Austin, Texas.

The S&P 500 banks sector jumped 2.8%, tracking a surge in Treasury yields as investors priced in policy tightening by the first half of 2022. Wells Fargo (NYSE:WFC) & Co led gains among major Wall Street banks, adding 3.7%. [US/]

“The message is that we’re on a course to reduce tapering and we’re headed towards higher interest rates, which will most likely going to be raised in the middle of next year, and I think Wall Street has already digested most of that,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.

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

Futures contracts tied to the Fed’s policy rate indicated that money markets are now expecting the U.S. central bank to raise interest rates by 25 basis points by next June versus a previous estimate of July.

At 11:46 a.m. ET, the Dow Jones Industrial Average was up 304.44 points, or 0.86%, at 35,906.42 and the S&P 500 was up 30.82 points, or 0.66%, at 4,728.78. The Nasdaq Composite was down 26.03 points, or 0.16%, at 16,031.41.

Investors were now awaiting a slew of economic data this week, including IHS business activity readings, personal consumption expenditure, and minutes of the Fed’s latest meeting.

Among other movers, Apple Inc (NASDAQ:AAPL) jumped 2.6% to a record high after J.P. Morgan flagged possible improvements to the supply of the iPhone 13 in coming months.

Tesla (NASDAQ:TSLA) Inc gained 3.9% after CEO Elon Musk tweeted that the Model S Plaid will “probably” be coming to China around March.

Activision Blizzard (NASDAQ:ATVI) slipped 2.4% after a media report that the video game publisher’s chief executive, Bobby Kotick, would consider leaving if he could not quickly address concerns over company culture.

Advancing issues outnumbered decliners by a 1.55-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.30-to-1 ratio on the Nasdaq.

The S&P index recorded 44 new 52-week highs and nine new lows, while the Nasdaq recorded 120 new highs and 404 new lows.

S&P 500 at record high as banks rally on Powell nomination

Join Our Time-Limited Free Subscription! Get Latest Trading Ideas, Business Info and Market Stocks.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

BREAKING NEWS

2/2 (C) Reuters. FILE PHOTO: Federal Reserve Chair Jerome Powell attends the House Financial Services Committee hearing on Capitol Hill in Washington, U.S., September...

Analytics

Politics31 minutes ago (Oct 28, 2021 03:12PM ET) 2/2 (C) Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks on his Build Back Better...

Brokers

Sign In/Free Sign Up 0 Stock Markets6 hours ago (Nov 22, 2021 07:52AM ET) (C) Reuters. By Peter Nurse Investing.com — Stocks in focus...

Analytics

4/4 (C) Reuters. FILE PHOTO: Campaign signs for Democrat Terry McAuliffe and Republican Glenn Youngkin stand together on the last day of early voting...

BREAKING NEWS

6/6 (C) Reuters. Smoke and flames rise over during the shelling near Kyiv, as Russia continues its invasion of Ukraine February 26, 2022. REUTERS/Gleb...

BREAKING NEWS

3/3 (C) Reuters. FILE PHOTO: Dmytro Dovzhenko, a Ukrainian veteran and military medical instructor, speaks during an interview with Reuters at his home in...

Disclaimer: TheSmartCitizenReport.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.

The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

© Copyright 2022,TheSmartCitizenReport.com All Rights Reserved