Wall Street on the rise welcomes the decision by US President Joe Biden to reconfirm Jerome Powell as head of the Federal Reserve, the US central bank.
Powell will therefore continue to be the helmsman of the institution, inaugurating his second term. Powell himself and Governor Lael Brainard were considered the most likely candidates to top the Fed. Many had pointed out that if Biden had chosen Brainard, the Fed would have taken on an even more dovish nature.
Lael Brainard was chosen for the position of vice president of the board of governors, replacing Richard Clarida, whose term expires on January 31, 2022.
Wall Street kicks off Thanksgiving week, or Thanksgiving Day, which is celebrated in the United States on the fourth Thursday of November.
The US stock exchange will therefore be closed on Thursday 25 November, to then reopen on Friday 26 November and close at 19 Italian time.
At about 4 pm Italian time, the Dow Jones rose by 0.71% to 35,853 points; the S&P 500 advanced 0.79% to 4,735, while the Nasdaq jumped 0.81% to 16,183 points.
Earnings are, however, held back by statements by German Chancellor Angela Merkel, who warned that further restriction measures could be imposed on the unvaccinated.
Highlighted among the stocks Moderna, which is up 2.6% after the FDA last week gave the green light to the vaccine booster for all American adult citizens. Moderna prices have gained 14.1% in the last five sessions.
Tesla rallies by more than 4% after founder and CEO Elon Musk reported that the electric car maker could launch the Model S Plaid in China by 2022.
In general, Wall Street tends to perform well in Thanksgiving week, usually ushering in the so-called Christmas rally.
Sam Stovall, CFRA’s chief investment strategist, noted that since 1950, the last five days of November have traditionally been positive.
There is a two-in-three chance that the market will rise on the eve of Thanksgiving and a 57% chance that the rises will resume after the holiday.
The US stock market is back from a week of earnings.
Last week the S&P 500 was up 0.3%: the benchmark index gained 2% since the beginning of November, grossing more than 25% since the beginning of 2021. Last week the Nasdaq Composite jumped by one. 1.2%, while the Dow Jones lost 1.3%.