Minutes ago, the White House announced that President Barack Obama would officially nominate Federal Reserve Vice Chair Janet Yellen for Fed Chair on Wednesday, October 8.
Yellen is considered a dove, which means she is more likely to keep monetary policy loose and easy.
Now that we are almost certain to have Yellen at the Fed’s helm, an uncertainty premium has been removed from the market. And the prospect for easy monetary policy is being seen as bullish for stocks.
Dow futures are up by around 30 points in the wake of the Yellen announcement. And as expected, the U.S. dollar is down slightly and gold is up around $US2 per ounce.
Here’s a look at Dow futures via FinViz: