US stocks end mixed as yields jump after Biden picks Jerome Powell to lead the Fed for a 2nd term

US stocks end mixed as yields jump after Biden picks Jerome Powell to lead the Fed for a 2nd term

US stocks gave up gains to end mixed on Monday as Treasury yields jumped after President Joe Biden nominated Jerome Powell for a second term as chairman of the Federal Reserve. The yield on the benchmark 10-year Treasury note climbed nearly 9 basis points to 1.625%, hitting tech stock particularly hard. Powell first became Fed chair in February 2018 and his current term was set to expire in February 2022. Investors were unsure if Biden would renominate Powell, or choose a more progressive candidate like Fed governor Lael Brainard. "Chair Powell has provided steady leadership during an unprecedentedly challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve," the White House said. Brainard was ultimately nominated by Biden to serve as vice chair of the Federal Reserve. "The nomination of Powell and Brainard suggest continuity at the Fed given that they have generally been in alignment when it comes to the embrace of the new framework. However, they will face a distinctly different economy in the years ahead than in the most recent ones," Bank of America economist Michelle Meyer said. The Fed will have to balance a continued rise in