S&P 500 Rises After Investors Greet Powell Nomination Announcement

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The S&P 500 pared gains and finished lower after news that President Biden would nominate Jerome Powell for a second term as chairman of the Federal Reserve, paving the way for the continuation of the current policy framework.

The decision, revealed Monday before the stock market opened, ended a guessing game over who would lead the Fed during a period in which the central bank is expected to unwind coronavirus-era stimulus measures. The Fed this month approved plans to scale back its bond-buying program, and elevated inflation has prompted market participants to expect higher interest rates next year.