Biden Transition Boosts MarketsTraders also cheer Biden’s decision to nominate former Fed Chair Janet Yellen for Treasury Secretary.
President-Elect Joe Biden Reportedly Picks Yellen As Next Treasury Secretary
S&P 500 futures are gaining ground in premarket trading as traders cheer Biden’s decision to appoint Janet Yellen as U.S. Treasury Secretary. While no official announcement was made, the original Wall Street Journal report has already been confirmed by other sources.
The former Fed Chair is known for her dovish views so traders bet that interest rates will stay low for years to come. In addition, markets expect that U.S. will finally provide the next round of stimulus to support the economy.
Transition Process Begins
The head of the General Services Administration has initiated the transition process which will provide the necessary information and resources to Joe Biden’s team.
The formal start of the transition process eliminated the remaining fears about potential political instability.
U.S. President Donald Trump will continue his legal battles in order to challenge elections results, but markets have no doubt that the transition process will be smooth, which is good for stocks.
Oil Tests August Highs
WTI oil continues its upside move and is currently trying to settle above August highs at $43.75. Reasons for optimism include positive vaccine news, Yellen as the next Treasury Secretary and the beginning of transition process from Trump to Biden.
In addition, Saudi Aramco operations were attacked by Yemen’s Houthis. While the attack did little damage, another increase of tensions in the region is bullish for oil.
Energy-related stocks made solid gains in yesterday’s trading session and look ready to continue their rally. At this point, traders eagerly ignore near-term challenges and focus on the potential rebound of demand for oil in 2021.
For a look at all of today’s economic events, check out our economic calendar.