Markets are already giving an investors a glimpse of what to expect on Monday. S&P 500 futures surged 1.14% as of 7:30 PM Eastern time Sunday while the U.S. Dollar Index was lower by half a percent. Ten-year Treasury futures rose a full point, a move not often seen during Asian trading.
Should Obama go with Yellen as his choice to lead the Fed, that could assuage skittish investors that have moved out of asset classes like bonds and gold due to the combination of Fed tapering and Summers possibly leading the Fed. Yellen is believed to have a more dovish view of monetary policy than Summers. Gold futures for December delivery were up at 1.47% in Asian trading at this writing.
iShares 20+ Year Treasury Bond ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SPY and TLT.