Yellen nomination supports mild bounce but techs slide

Optimism surrounding news that Janet Yellen is set to be nominated by President Obama later today has helped to offset Washington’s fiscal worries.

Trading has been volatile today on Wall Street, with the Dow earlier hitting its lowest level since June, before mounting a moderate rally.

By early afternoon in New York, the Dow had gained 0.35% or 52 points to 14,828 and the broader S&P 500 climbed 0.20%. Technology stocks had a tough time yesterday and that has continued today, with the NASDAQ 100 dropping 0.3%.

A White House official revealed that vice-chair of the Federal Reserve Janet Yellen will be officially announced as being nominated by President Obama for the role head of the central bank this afternoon in Washington at 3pm ET (8pm BST).

Ms Yellen has been the favourite for the position since Larry Summers ruled himself out of the race last month, so the announcement is no surprise, but it is seen as a positive for the stock market, owing to Ms Yellen’s reputation as a dove.

At 7pm BST the Fed will release the minutes from the last FOMC meeting. The decision to not defer tapering took the market by surprise, so it will be interesting if there are any insights into the thought processes behind that decision.

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