Stocks Surge After Larry Summers Steps Away from Fed Competition; Accommodative Policies Seen Continuing
Stocks rallied today, with the S&P 500 briefly climbing past the 1,700 mark for the first time ever after former Treasury Secretary Larry Summers late yesterday said he was withdrawing from consideration for Federal Reserve Chairman Ben Bernanke's job. In addition to avoiding a likely contentious nomination process, investors saw the move as clearing a path for current Fed Vice Chairman Janet Yellen to move up and maintaining the central bank's accommodative policies. Most industry sectors in the S&P 500 advanced, led by financial and industrial stocks. Mining and materials stocks also rose as gold and other metal gained as the U.S. dollar dropped against other currencies with the Fed now expected to maintain its easy-money bias. Treasuries also rose today. The Nasdaq dipped slightly into the red late.