Stocks Slip as Bond Yields Rise after Warsh Picked for Fed Chair

The S&P 500 Index ($SPX) (SPY) today is down -0.35%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.58%.  March E-mini S&P futures (ESH26) are down -0.36%, and March E-mini Nasdaq futures (NQH26) are down -0.60%.

Stock indexes are under pressure, and bond yields and the dollar are climbing today after President Trump said he is nominating Kevin Warsh to be the next Fed Chair.  The 10-year T-note yield rose to a 1-week high, gold prices fell to a 1-week low, and the dollar rose as Mr. Warsh, who often emphasized inflation risks as Fed Governor from 2006-2011, is seen as less supportive of deep interest rate cuts. Current Fed Chair Powell’s term ends in May.