Wall Street Opened Celebrating the Next Powell Department

Jakarta, CNBC Indonesia – The United States (US) stock market rose at the opening of trading Monday (11/22/2021), welcoming the election of Jerome Powell to continue his duties to lead the US central bank (Federal Reserve / The Fed).

The Dow Jones Industrial Average rose 120 points by 08:30 local time (20:30 WIB) and within 20 minutes to 235.6 points (+0.66%) to 35,837.58 while the S&P 500 grew 34.1 points (+ 0.73%) to 4,732.07. The Nasdaq jumped 107.1 points (+0.67%) to 16,164.54.

Powell, a former investment management firm executive, was first nominated by US President Barack Obama to be a member of the Fed’s board of governors. He was elected chairman of the Fed under US President Donald Trump.

Banking stocks and yields (yield) US government bonds rose after the White House announced the decision. Shares of JPMorgan and Morgan Stanley rose more than 2% at the open.

The world’s most powerful central bank has reduced the pace of asset purchases on the secondary market since November, the first time the policy has been implemented tapering and indicated that the process could be accelerated early next year.

Meanwhile, Tesla shares rose more than 2% after Tesla CEO Elon Musk stated that the electric carmaker could launch the Model S Plaid in China as early as the spring of 2022.

Moderna shares also shot up, which was 2.4% after the US Food and Drug Administration (FDA) last week allowed the use of booster vaccines for adults.

On the other hand, shares of game developer Activision Blizzard plunged 1.4% following news that CEO Bobby Kotick was exploring the possibility of stepping down if he failed to change the company’s culture that was beset by sexual harassment issues.

The S & P 500 index last week rose 0.3% following the positive performance of the US retail giant and the retail data of the Superpower. The Nasdaq jumped 1.2%, while the Dow Jones fell 1.3%. The S&P 500 is up 2% on the month and up 25% for the year.

Wall Street will close early Tuesday for Thanksgiving. CFRA Chief Investment Planner Sam Stovall said historical data showed there was a 60% chance the market would strengthen ahead of the Thanksgiving holiday and a 57% chance the day after the holiday. Since 1950, the last trading week of November has always been positive.

CNBC INDONESIA RESEARCH TEAM

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