U.S. stock markets were stable in overnight trading Monday following a sell-off that was tech-focused and sparked by higher bond yields, which saw the Nasdaq Composite fall more than 1%.

Dow futures rose by 40 points S&P 500 futures gained 0.1% and Nasdaq 100 futures rose 0.1%.

The S&P 500 and Nasdaq Composite fell on Monday as growth pockets of the market reacted to a jump in bond yields. The U.S. 10-year Treasury Yield climbed 9 basis points to 1.62% Monday.

Initial reaction to the announcement was positive. Federal Reserve Chair Jerome Powell was nominatedThe President Joe Biden has been elected for a fourth four-year term. It is expected that the central bank will maintain its current monetary course as the economy recovers and attempts to fight inflation. However, the markets changed their minds towards the close of the session. Yields continued rising.

On MondayThe Dow Jones Industrial Average climbed 17 points after gaining more than 300 points in one session. The S&P 500 fell 0.32% after hitting an intraday high during regular trading. Although it had set an intraday record, the Nasdaq Composite fell 1.26%.

Jim Paulsen (chief investment strategist at Leuthold Group) stated that “Bullishness has been enhanced by the announcement by President Biden that current Chair Powell would be reappointed.” Fears that Lael brainard would be elected over Powell were growing in recent weeks. Her perception as a larger monetary Dove that could increase inflation worries was exacerbated by this.

Despite trading slowing due to Thanksgiving week, the Fed chief decision behind the market is still in effect, investors will continue to monitor some economic data, such as the Philly Fed, which is out on Tuesday. The week will also include weekly unemployment claims, GDP updates, personal income and measures of consumer confidence.

Ryan Detrick (chief financial strategist, LPL Financial) stated that “it is Thanksgiving week,” so there won’t be many fireworks the following few days. The latest Fed minutes will be available Wednesday along with the Fed’s preferred measure of inflation, the PCE. This should give us something to consider before we go and enjoy a large amount of turkey.

On Tuesday, earnings season continues with reports from American Eagle, Best BuyAnd Abercrombie & FitchBefore the bell. Dell Technologies, GAP, HPAnd NordstromReport quarterly earnings on Tuesday after the bell.

Investors worry about the coronavirus threat from overseas. Angela Merkel, German Chancellor, warned the country that there was a surge in the number of cases.

Paulsen said that, “Although Covid counts around the world are rising, there isn’t much evidence it is closing down the U.S. Economy again as in the past.” Paulsen said that travel forecasts for Thanksgiving have been the best since before the pandemic.

On Thursday, the U.S. market will close for Thanksgiving. At 1 p.m. ET, the stock market will close. ET on Friday.