Wall Street soars at open on Summers` retreat from Fed race . . . . . . . U.S. stocks soared Monday, trailing a global rally on news that Lawrence Summers withdrew from the race for Chairman of the Federal Reserve. All three major U.S. indexes were moving up by roughly 1% at the opening and the U.S. dollar was slipping. The Dow Jones Industrial Average gained 0.98% to 15524.66 points. the S&P 500 index gained 0.78% to 1701.14 points. The NASDAQ composite gained 0.44% to 3738.51 points. As of 10:02 a.m. ET Markets have made broad swings in recent months as investors have adjusted their expectations for the Fed`s withdrawal of stimulus. Mr. Summers, former Treasury Secretary, was widely considered to be more hawkish than his rivals, meaning Wall Street believed he would have trimmed the Fed’s stimulus programme and tightened rates more quickly than the other candidates. Mr. Summers withdrew from the running for Fed Chairman on Sunday. Investors believed a Fed run by Mr. Summers, a former Treasury secretary who has been one of President Barack Obama`s top advisers, would reduce stimulus at a faster pace than other top candidates, such as current Fed Vice Chairman Janet Yellen. His decision could leave Janet Yellen, a well known policy dove, as front runner for the top job. President Barrack Obama has accepted Summers` withdrawal. As well as the jump in equity futures, the dollar index, which measures the US currency against a basket of its peers, is slipping 0.5 per cent, a three-week low, while Treasury futures in 5-year and 10-year maturities climb sharply, pushing yields down 10 and 8 basis points to 1.59 per cent and 2.81 per cent, respectively. #egyptyard
Posted on: Mon, 16 Sep 2013 14:17:59 +0000
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