Stock futures open slightly higher as tech-led decline

Equity futures opened slightly higher Monday night after a mixed session as investors continued to ponder the market implications of the Federal Reserve’s renomination Jerome Powell to lead the central bank.

Contracts on the S&P 500 rose. Previously, the blue-chip index hit an all-day high before pulling back to finish in the red, with technology stocks dragging the index down. The Nasdaq underperformed, falling more than 1%, while the Dow narrowly finished in the green. Shares of Zoom Video Communication (ZM) fell in late trading even after the company posted better-than-expected quarterly revenue growth and full-year outlook, suggesting that use of the video conferencing company’s software during the reopening held up stronger than expected. . Companies including Best Buy (BBY), Dick’s Sporting Goods (DKS) and Nordstrom (JWN) will report quarterly results Tuesday.

The reappointment of Fed Chair Jerome Powell to central bank leadership caught the attention of the market this week, with many investors reacting positively to the likelihood that the previously telegraphed monetary policy framework will remain in effect with the reappointment of Fed Chair Jerome Powell to the central bank leadership position this week. powell. That includes the expectation that current asset purchases will decline by mid-next year and that there will be at least one rate hike before the end of 2022.

“Continuity in a time of such extraordinary uncertainty is certainly welcome news. We have extraordinary uncertainty as we are turning from the phase of the cycle where the Fed had supported the recovery from the pandemic-induced recession, and… it has prevented a financial market collapse,” Diane Swonk, Grant Thornton’s chief economist, told Yahoo Finance Live. “But now we have very easy financial market conditions and we are dealing with inflation. And turning to face inflation and tackle it without derailing the recovery – that’s very hard to do. We haven’t seen the Fed cut inflation since the early 1980s.”

President Joe Biden also nominated Fed Governor Lael Brainard — previously identified as a potential candidate for the position of Fed chairman to replace Powell — as vice chairman of the Fed’s Board of Governors. With these two nominations, market participants have turned their attention to who could fill the three vacant and soon-to-be vacant seats on the Fed Board, including the chief vice chair for oversight. Biden said in a press statement Monday morning that he expected to announce those appointments “in early December.”

“Political decisions like this are competitions between affinity – you love someone in your own party – and convenience – what can you get the Senate to do for you, and will the markets receive it? You have to think of the Powell-Brainard choices as part of a bigger package,” Vincent Reinhart, Dreyfus-Mellon chief economist and macro strategist, told Yahoo Finance Live. “The White House is getting three new governors to nominate, and it’s likely to become more progressive. So the bottom line is that in six months, the group of people that Chairman Powell has to argue with to make decisions will be more modest than it is now.”

6:06 PM ET Monday: Stock Futures Open Slightly High

Here’s where the markets traded Monday night:

  • S&P 500 futures (ES = F): +7.5 points (+0.16%), to 4,687.25

  • Dow futures (YM=F): +49 points (+0.14%), to 35,620.00

  • Nasdaq futures (NQ = F): +28.5 points (+0.17%) to 16,410.50

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, Nov. 8, 2021. REUTERS/Brendan McDermid

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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