- US stocks ended mixed on Monday after President Biden nominated Jerome Powell for a second term as Fed chairman.
- Biden also nominated Fed governor Lael Brainard as vice chair of the Federal Reserve.
- The yield on the benchmark 10-year Treasury note climbed nearly 9 basis points to 1.625%, hitting tech stock particularly hard.
US stocks gave up gains to end mixed on Monday as Treasury yields jumped after President Joe Biden nominated Jerome Powell for a second term as chairman of the Federal Reserve.
The yield on the benchmark 10-year Treasury note climbed nearly 9 basis points to 1.625%, hitting tech stock particularly hard.
Powell first became Fed chair in February 2018 and his current term was set to expire in February 2022. Investors were unsure if Biden would renominate Powell, or choose a more progressive candidate like Fed governor Lael Brainard.
"Chair Powell has provided steady leadership during an unprecedentedly challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve," the White House said. Brainard was ultimately nominated by Biden to serve as vice chair of the Federal Reserve.
Here's where US indexes stood at the 4:00 p.m. ET close on Monday:
- S&P 500: 4,682.94, down 0.32%
- Dow Jones Industrial Average: 35,619.25, up 0.05%
- Nasdaq Composite: 15,854.76, down 1.26%
"The nomination of Powell and Brainard suggest continuity at the Fed given that they have generally been in alignment when it comes to the embrace of the new framework. However, they will face a distinctly different economy in the years ahead than in the most recent ones," Bank of America economist Michelle Meyer said.
The Fed will have to balance a continued rise in inflation with its continued goal of lowering the unemployment rate, Meyer's added.
Shares of Astra Space soared as much as 36% on Monday after the space company successfully reached orbit with its LV0007 rocket Friday night. The launch spurred a congratulations tweet from SpaceX founder Elon Musk.
Tesla jumped as much as 6% on Monday after CEO Elon Musk tweeted that the Model S Plaid will probably launch in China in March 2022. China demand is seen as the linchpin the Tesla's bull thesis, according to Wedbush.
An ongoing rally in the crypto coin Avalanche means it's neck-and-neck with dogecoin to become the 10th most valuable crypto by market cap. The alternative cryptocurrency has surged more than 50% since it announced a partnership with Deloitte last week.
Even though ConstitutionDAO lost out on its bid to buy a rare copy of the US Constitution to Ken Griffin last week, the crowdfunding crypto collective is setting its eyes on another project to invest some of the tens of millions of dollars raised by the group.
Scynexis has soared as much as 42% since Michael Burry's Scion Asset Management revealed in a 13F filing last week a $1 million position in the biotech company.
West Texas Intermediate crude oil rose as much as 0.74% to $76.50 per barrel. Brent crude, oil's international benchmark, jumped as much as 0.74% to $79.47 per barrel.
Gold fell as much as 2.52% to $1,805.00 per ounce.