New York Report: Choice of Yellen as new Fed boss boosts Wall St

US stocks climbed yesterday to recovering from some of the day’s earlier losses, and the year’s high-performing technology stocks fell, as investors anticipated the nomination of Janet Yellen as US central bank chairman and as a political standoff continued in Washington.

The stalemate in Washington and expectations of Yellen’s nomination as Federal Reserve chief made for a volatile market yesterday, leading investors to lock in profit on the year’s major gainers, many of them technology shares. Facebook was the biggest drag on the Nasdaq 100, down 2.6 per cent to $45.92. The Nasdaq 100 index has had its biggest three-day drop this week since June 2012.

The broader market was in somewhat better shape, with defensive sectors such as telecommunications and utilities rising on the day.

The Dow Jones industrial average was up 47.26 points, or 0.32 per cent, at 14,823.79. The Standard & Poor’s 500 Index was up 3.01 points, or 0.18 per cent, at 1,658.46. The Nasdaq Composite Index was down 14.26 points, or 0.39 per cent, at 3,680.57.

The S&P 500 dropped 1.2 per cent on Tuesday, its worst decline since 27 August sending the benchmark index to its lowest level since 6 September as traders cashed in gains in some of the year’s highest performing tech stocks.

Men’s Wearhouse jumped 29.1 per cent to $45.49 after it rejected smaller rival Jos. A. Bank Clothiers’ $2.3 bn takeover offer, saying it significantly undervalued the company and could raise antitrust issues. Jos. A. Bank shares rose by 7.5 per cent to $44.79.