LAST UPDATE 21:50
The S&P 500 is climbing to a new all-time high following the decision of US President Joe Biden to nominate Federal Reserve Chairman Jerome Powell for a second term at the helm of the central bank, while the industrial Dow Jones is moving upwards.
Lael Brainard, member of the Board of the Fed, which was the other contender for the central bank, was nominated by the US president for vice president of the central bank.
Speaking at a White House event, Joe Biden noted that the stability and determination shown by Jerome Powell to the Fed leadership were the deciding factors in his selection.
For their part, both Fed Chairman Jerome Powell and Lael Brainard, in their statements at the same event, highlighted the corrosive impact that high inflation has on the US economy and households, sending a message that the central bank’s main goal is now to control the price rally.
In a statement following President Biden’s announcement of the top two positions at the central bank, the two officials said they knew how damaging inflation had become.
“We know that high inflation has a serious impact on households, especially those who are less able to afford the higher costs of essential goods such as food, housing and transportation,” said Powell, speaking alongside President Biden. Brainard. “We will use our tools to support the economy – with a strong labor market – and to prevent high inflation.”
Indicators – Statistics
On the board, the industrial Dow Jones gained 253.27 points or 0.71% to 35,855.00 points, while the broader S&P 500 adds 25.68 points or 0.55% to 4,723.73 points.
The Nasdaq lost the gains that led it earlier to a new record against the backdrop of rising US bond yields amid growing speculation that the Fed will begin raising interest rates in 2022.
The technological index loses 34.52 points or -0.21% to 16,022.82 points.
Of the 30 stocks that make up the Dow Jones industrial average, 24 are moving with a positive sign and six with a negative one. Goldman Sachs Group made the biggest gains with gains of $ 13.49 or 3.48% at $ 400.88, followed by Travelers at $ 157.61 with an increase of 3.33% and Cisco Systems at 55.01. USD with gains of 3.31%.
The biggest losses are recorded by Visa (-2.04%), Boeing (-1.90%) and Amgen (-1.23%).
The market starts the week in a festive atmosphere in view of the holiday on Thursday for Thanksgiving, while on Friday the meeting will be smaller, due to Black Friday. Investors are optimistic about the turnover during the holidays, with the National Trade Union forecasting sales growth in November and December by 8.5% and 10% this year to about $ 850 billion.
At the macro level of the day, the US economy regained its momentum in October, following the sluggish growth of recent months, according to data from the Federal Reserve Bank of Chicago.
In particular, the Chicago Fed’s national activity index rose to 0.76 points last month from -0.18 points that fell in September, surpassing the converging estimates of economists in a FactSet poll that expected an increase to 0.17 points.
The Chicago Central Bank Index is made up of 85 economic indicators from almost all business categories, which fall into four broad categories: output and income, employment, unemployment and hours worked, personal consumption and housing, and sales, orders and inventories. A positive indicator of the indicator shows growth above the historical trend, while a negative measurement corresponds to growth below the trend.
At the same time, sales of used homes rose in October, exceeding analysts’ estimates, in a new indication that demand remains strong across the country.
In particular, sales of used homes increased by 0.8% in October from the previous month, to the seasonally adjusted size of 6.34 million as announced by the National Union of Realtors. Analysts’ average estimates in a MarketWatch poll put sales at 6.2 million.
The average price for a used home in October was $ 353,900, up more than 13% compared to October 2020.