Stocks End Lower as President Biden Nominates Powell to Second Fed Term
Equity markets traded mostly lower, with the S&P 500 and Nasdaq Composite finishing in negative territory.
The Dow and broader U.S. stock market diverged on Monday, as the dollar strengthened on news that Jerome Powell will serve a second term as Chairman of the Federal Reserve.
Wall Street’s major indices were mixed at the close, with the Dow Jones Industrial Average (DIA) rising 17.28 points, or 0.1%, to 35,619.26.
The broad S&P 500 Index (SPY) of large-cap stocks fell 0.3% to settle at 4,682.93. Most sectors finished in negative territory.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) declined 1.3% to close at 15,854,76.
A measure of implied volatility known as the CBOE VIX (VXX) was little changed on Monday. The so-called “investor fear index” reached an intraday high of 19.03 on a scale of 1-100, where 20 represents the historical average. It would eventually settle up 0.6% at 18.02.
In commodities, oil prices were higher on Monday, as U.S. West Texas Intermediate futures climbed 57 cents, or 0.8%, to $76.51 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, fell 58 cents, or 0.7%, to $79.47 a barrel.
Sign up for our Newsletter & get the FREE eBook
Retirement Day Trader:
How to Sell Weekly Options for Steady Income
In precious metals, gold prices plunged, as the February futures contract declined $47.00, or 2.5%, to $1,807.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures declined 60 cents, or 2.4%, to trade at $24.24 a troy ounce.
The Final Word: On Monday, President Biden nominated Jerome Powell for a second term as chairman of the Federal Reserve, paving the way for the continuation of the current framework surrounding monetary policy.