(CNBC) -- Stocks slumped in afternoon trading on Monday, reversing an earlier rally that came after President Joe Biden announced he would renominate Jerome Powell to continue to lead the Federal Reserve over Fed Governor Lael Brainard.
The Dow Jones Industrial Average rose just 17 points, down from a gain of more than 300 points at session highs. The S&P 500 and Nasdaq Composite fell 0.3% and 1.3% respectively after hitting intraday record highs earlier in the session.
Powell, a former private equity executive, slashed interest rates to near zero and implemented emergency asset purchases in March 2020 to help backstop the market during the first wave of the Covid-19 pandemic, helping the financial system to remain operational during a sharp slowdown in economic activity. He also lead a landmark re-evaluation of the Fed’s inflation targeting framework during the Covid crisis.
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