US exchanges operate in a mixed field with news that US President Joe Biden has appointed Jerome Powell for a second term as Fed chairman.
The Dow Jones rose 0.69%, to 35,845 points, and the S&P 500 grew 0.50%, to 4,721 points, at 4:33 pm, Brasília time, this Monday (22), while the Nasdaq fell 0.31% , to 16,007 points.
The leading US technology index retreated reflecting Activision Blizzard shares that fell more than 2.6% after The Wall Street Journal reported that Chief Executive Bobby Kotick told managers he would consider leaving the company if he couldn’t resolve its cultural problems quickly, and Rivian’s shares tumbled more than 10% after Ford dropped a pact over electric vehicles.
Powell and the Fed
The choice of who would run the institution during a period in which Bacen is expected to undo stimulus measures made investors apprehensive. The Fed said on Nov. 3 that it will begin cutting back on monthly bond purchases in November and plans to end them in 2022, but it remains with the view that high inflation will be “transient” and likely not require a rapid rise in bonds. fees.
Consumer price inflation in the United States rose again in October – when the last figure was released, and has already accumulated in 12 months the biggest increase in the last 30 years. Prices rose 6.2%, reported the Bureau Of Labor Statistics (equivalent to the IBGE in the US).
The governor and former US Undersecretary of the US Treasury for International Affairs, Lael Brainard, was vying for the seat with Powell. She will be appointed as Fed vice president, the White House said.
Another highlight for the country’s main indices is the strong corporate earnings that pushed the portfolios close to the historic high. Of the roughly 480 companies in the S&P 500, 82% beat analysts’ earnings forecasts, according to FactSet.
According to The Wall Street Journal, “Investors generally expect more market gains as the economy continues its recovery. Some, however, are bracing for an increase in volatility as central banks around the world prepare to respond to higher inflation, driving up borrowing costs.”
*With information from Reuters
Reference: CNN Brasil
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