The S&P 500 ended lower on Monday after US President Joe Biden nominated Federal Reserve chief Jerome Powell to head the central bank for a second term, but lenders from Wall Street rose on the prospect of interest rate hikes in 2022.
The Nasdaq sank into negative territory after along with the S&P 500 it had previously reached all-time highs. A rise in Treasury yields weighed on Amazon, Alphabet and other great growth values.
Instead, Apple ended at an all-time high after JPMorgan He noted possible improvements in the supply of the iPhone 13 in the coming months.
Powell’s nomination was very well received by investors who hoped that there would be no big changes at the Fed, as it steers the economy out of the Covid-19 pandemic. The central bank plans to return to pre-virus monetary policy in late 2022.
Fed Governor Lael Brainard, who was the other candidate for the job, will be the vice president, the White House reported.
“Markets like predictability … Even if Brainard would have been a good choice, markets would not know what to expect from it even though the general consensus was that it would mean lower rates for longer,” said Randy Frederick, Principal Operations and Derivatives Manager at Charles Schwab.
The bank index of the S&P 500 It rebounded, following rising Treasury yields as investors forecast a tightening of monetary policy in the first half of 2022. Wells Fargo & Co was one of the best performers.
The S&P 500 lost 15.02 points, or 0.32%, to 4,682.94 units, while the Nasdaq Composite it fell 202.68 points, or 1.26%, to 15,854.76 units. The Promedio Industrial Dow Jones it rose 17.27 points, or 0.05%, to 35,619.25 units.
The value index of the S&P 500 greatly outpaced the growth rate.