Dow jumps 238 points as Fed's Williams says strong economic growth not yet enough to impact monetary policy

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  • US stocks were mixed on Monday, with the Nasdaq 100 falling while the S&P 500 and Dow Jones rallied higher.
  • The Fed’s John Williams said on Monday that the strengthening economy is not yet enough to impact monetary policy.
  • Investors are awaiting another big week of earnings, as PayPal, General Motors, and Etsy are set to report.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks were mixed on Monday, with the S&P 500 and Dow Jones rising as the Nasdaq 100 fell.

The mixed trading came amid comments from the Fed’s John Williams, who said accelerating economic growth is not yet enough to impact the Fed’s easy monetary policy.

“It’s clear there is a big shift in the economy, and the outlook has improved,” Williams said at a virtual event. “But let me emphasize that the data and conditions we are seeing now are not nearly enough for the FOMC to shift its monetary policy stance.”

The Fed is currently buying $120 billion of bonds per month and has set its Fed Funds Rate at near zero. Investors are also anticipating another big week of corporate earnings, as PayPal, General Motors, and Etsy are set to report later this week.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

Investors turned their focus to Berkshire Hathaway’s Warren Buffett and Charlie Munger over the weekend as the company held its annual shareholders meeting virtually.

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Buffett and Munger cautioned investors against speculative investing, said that trimming their positions in Apple and Costco was a mistake, and harpooned Robinhood, SPACs, and cryptocurrencies throughout the meeting.

Munger’s criticism of cryptocurrencies didn’t stop investors from bidding up ethereum and bitcoin over the weekend. Ethereum surged to record highs above the $3,000 level, and Ark Invest laid out 3 reasons why the cryptocurrency is surging.

Buffett confirmed that Greg Abel will be his likely successor at Berkshire Hathaway. Abel currently leads Berkshire Hathaway’s energy business. Abel has long been seen by investors as a strong contender to lead the $631 billion conglomerate.

Fidelity cut its implied valuation of Ant Group in half to $144 billion, according to regulatory filings. The mutual fund giant had previously valued its Ant Group stake at $295 billion, but increased regulatory scrutiny from China led to a canceled IPO and a depressed valuation.

Oil prices were higher. West Texas Intermediate crude rose 1.34%, to $64.43 per barrel. Brent crude, oil’s international benchmark, jumped by 1.09%, to $67.49 per barrel.

Gold jumped 1.3%, to $1,791.30 ounce.

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