Powell’s nomination, which will see him lead the Fed for another four years, was well received by investors who expected no major changes to the central bank, as it guides the economy through a post-Covid recovery.
Fed Governor Lael Brainard, who was also a top candidate for the job, will be Fed vice chairman, the White House said.
Finance firms were the top performers in pre-noon New York trading with a 1% advance.
The major Wall Street banks were up between 1.5% and 3%, following a jump in Treasury bond returns as investors predicted a monetary tightening from the Fed for the first half of 2022. Wells Fargo & Co led earnings among its peers.
The refuge sectors, including real estate and health care, had the worst performers, with a it falls by around 0.6%.
The Dow Jones Industrial Average was up 238.50 points, or 0.7%, at 35,840.48 units, while the S&P 500 was up 33.62 points, or 0.7%, at 4,731.58 units. The Nasdaq Composite added 105.57 points, or 0.7%, to 16,163.01 units.
The Nasdaq reached a second consecutive record due to the fact that the demand for technology stocks remained strong. Heavy hitters, including Amazon, Apple and Meta Platforms, were up 0.1% to 2%.
The tech sector outperformed its peers last week, helping the Nasdaq close above the 16,000 level for the first time, as concerns about rising Covid-19 cases in Europe fueled demand. refuge.
Travel and energy stocks, which were among the worst performers last week, also rose for the session.
European shares closed unchanged on Monday as Germany’s warning of tighter restrictions overshadowed earnings at Telecom Italia following a $ 12 billion proposal from US fund KKR to privatize Italy’s largest telephone group.
The pan-European STOXX 600 Index ended flat after previously falling when the German Chancellor, Angela Merkel said that Europe’s largest economy needed tighter restrictions to control a wave of COVID-19 infections. This came after an increase in Covid-19 cases led Austria to resume lockdowns.
Meanwhile, Telecom stocks gained 1.8%, their best day since March, driven by a jump of 30.3% in Telecom Italia (TIM). KKR reportedly set a target price of 50.5 euro cents for its tender offer, a 45.7% premium over TIM’s closing price on Friday.
Italian mobile tower company Inwit, partly controlled by TIM, gained 4.6% as KKR’s approach created speculative appeal for the company, while TIM’s main investor, Vivendi, was up 2%.
The European benchmark posted its first weekly drop in seven weeks on Friday as concerns about the impact of renewed COVID-19 restrictions hit cyclical sectors like automakers and banks. But those sectors recovered on Monday, with the advance of banks, mining and industrial companies.
In another deal in the telecommunications sector, Norway’s Telenor rose 1.5% after agreeing with Charoen Pokphand Group to merge its Thai units in a deal valued at around $ 8.6 billion.
Sweden’s Ericsson fell 5.6% after the mobile telecommunications equipment maker agreed to buy cloud communications company Vonage for $ 6.2 billion.