Wall Street hits record, European shares gain on Powell nomination
Wall Street shares rose to record levels on Monday and European stocks turned higher after U.S. President Joe Biden picked Jerome Powell to continue as Federal Reserve chair, in a move welcomed as a signal of stability by global investors.
European investors will be keeping an eye on the spread of Covid-19 across the continent after Germany and Austria re-imposed strict containment measures last week.
U.S. bank stocks rise as industry welcomes Powell renomination
Nasdaq, S&P 500 end down after hitting record highs
The Dow Jones Industrial Average rose 0.05% to end at 35,619.25 points, while the S&P 500 lost 0.32% to 4,682.94.
The Nasdaq Composite dropped 1.26% to 15,854.76.
The S&P 500 ended lower and the Nasdaq tumbled deep into negative territory on Monday after both earlier hit record highs following the announcement of a second term for Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average ended slightly higher.
Climbing Treasury yields kept tech stocks broadly lower, with holdouts including Microsoft and Apple, which many investors view as relatively safe, giving up gains late in the session.
Powell's nomination was welcomed by many investors hoping for no big changes in the Fed as it guides the economy through a recovery from the pandemic. 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.
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.
The S&P 500 value index climbed 0.6%, strongly outperforming the S&P 500 growth index's 1% dip.
Investors were awaiting a slew of economic data this week, including IHS business activity readings, personal consumption expenditure, and minutes of the Fed's latest meeting.
Reference: CNBC, Reuters
Thai
Eng