Stocks were volatile on Monday as President Joe Biden announced that he would renominate Jerome Powell as Fed chair.
 | MON, NOV 22, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 161.02 | +0.47 | +0.29% | | CSCO | 54.60 | +1.35 | +2.54% | | INTC | 49.83 | +0.31 | +0.63% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | F | 20.48 | +1.09 | +5.62% | | AAPL | 161.02 | +0.47 | +0.29% | | NVDA | 319.56 | -10.29 | -3.12% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 161.02 | +0.47 | +0.29% | | NVDA | 319.56 | -10.29 | -3.12% | | AMD | 152.52 | -2.89 | -1.86% | |
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Stocks were volatile on Monday as President Joe Biden announced that he would renominate Jerome Powell as Fed chair, stamping his approval of the central banker who has guided the U.S. economy through the depths of the Covid-19 pandemic. The competition for Fed chair appeared to be between the incumbent Powell and Fed Governor Lael Brainard, who was favored by some progressives in Congress. In tapping Powell to serve another term and nominating Brainard to vice chair, Biden appears to have threaded the needle between pleasing markets and Capitol Hill. "We expect this pair to win quick Senate confirmation, and we view this decision as a market positive, especially for banks," Ed Mills, Washington policy analyst at Raymond James, said in a note to clients. "The markets have been comfortable with Powell and have considerable confidence in his leadership, especially given his stewardship through the COVID crisis."
"Going forward, there are considerable challenges for the Fed, but [Powell's] leadership will be viewed as more market-driven, rather than politically-driven (a market concern we had heard with a potential Brainard-led Fed)," Mills added.
The initial winner from Biden's decision appeared to be bank stocks. The prospect of rising interest rates helped lift stocks like JPMorgan and Goldman Sachs more than 2%. Those names also benefited from the fact that Brainard – who is viewed as more aggressive on regulation – was passed over for the top job at the central bank.  "The stock market is voting today for continuity, and the interest market is saying there will be higher rates, so for banks what that means is normalized rates should mean normalized earnings," Wells Fargo senior banking analyst Mike Mayo said on "Closing Bell." The overall market picture was more negative for the session, however, as higher rates appeared to hit tech stocks. The Nasdaq Composite and S&P 500 both finished in the red after setting intraday record highs in morning trading, while the Dow held on to a gain of about 17 points. |
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