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Wall Street welcomes Powell reappointment, PMI data shows inflation risk, and oil traders await Biden announcement. Independence President J [View in browser]( [Bloomberg]( Wall Street welcomes Powell reappointment, PMI data shows inflation risk, and oil traders await Biden announcement. Independence  President Joe Biden’s [selection of Jerome Powell]( for a second term as Federal Reserve chair was [welcomed by Wall Street](, with the continuity taking [one risk off the table]( ahead of the Thanksgiving holiday. Picking Powell should help [ease the confirmation]( of Lael Brainard as vice chair in the Senate. The president has yet to pick people for three other spots on the seven-member board of governors, including the key [vice chair of supervision role]( that’s being closely watched by progressives within his own party. The White House said he would make an announcement on those positions [in early December](. Inflation This morning’s Purchasing Managers Indexes showed [price pressures]( continued to rise for businesses in the euro area. Despite the composite reading coming in well above expectations at 55.8, the outlook looks far from optimistic with the risk of [further Covid lockdowns]( adding to concerns about prolonged inflation. There was little good news from policy makers, with European Central Bank Executive Board member Isabel Schnabel saying she sees inflation risks “[skewed to the upside](” while both [the Dutch]( and [German central banks]( warned of price growth persisting. PMI data for the U.K. showed the highest number of companies reporting [increased cost burdens]( in two decades. Crude Biden is expected to announce a release of more than 35 million barrels of oil from the [Strategic Petroleum Reserve]( as soon as today. The move, expected to be coordinated with [releases from India, Japan and South Korea](, would pit some of the world’s biggest consumers against the OPEC+ alliance for[control of the oil market](. The Saudi-based International Energy Forum said producers may [change their plans for output increases]( if there is a sale of reserves. A barrel of West Texas Intermediate [dropped below $76]( this morning ahead of the expected announcement. Markets drop The trimming of dovish Fed bets on the Powell news and renewed concerns about the growth outlook are pushing global stocks lower. Overnight the MSCI Asia Pacific Ex-Japan Index slipped 0.4% with tech shares in Hong Kong hit by [renewed regulatory risks](. Japan was closed for a holiday. In Europe the Stoxx 600 Index had dropped 0.9% by 5:50 a.m. Eastern Time in a broad-based selloff on concerns over Covid lockdowns. S&P 500 futures pointed to a [small move lower at the open](, the 10-year Treasury yield was at 1.637% and gold dropped below $1,800 an ounce. Coming up... U.S. November manufacturing PMI is at 9:45 a.m. with Richmond Fed manufacturing for the month at 10:00 a.m. The U.S. sells $59 billion of 7-year notes at 1:00 p.m. Biden is scheduled to speak on the economy at 2:00 p.m. with an announcement on oil reserves possibly coming in that speech. Best Buy Co Inc., Dell Technologies Inc., American Eagle Outfitters Inc., Analog Devices Inc. and HP Inc. are among the many companies reporting results. What we've been reading Here's what caught our eye over the last 24 hours. - Every step of the global supply chain is going wrong — [all at once](. - [Gold is losing again](, and it’s not because of Bitcoin. - Lira [weakens past 12 per dollar]( after Erdogan defends low rates. - Asia’s richest man looks to [Walton family playbook]( on succession. - One investor makes [a quick $582 million]( in Evergrande fire sale. - Selloff in highly priced tech stocks is pressuring [hedge funds](. - An absolutely bonkers plan to give [Mars a magnetosphere](. And finally, here’s what Justina’s interested in this morning When my phone kept buzzing with market headlines over dinner in London, I thought I was going to see a more dramatic close than the S&P 500 down 0.3%. But of course the devil was the details. Ten-year yields rose eight basis points yesterday on Jerome Powell’s renomination, and a market-neutral value strategy duly surged 3% in its best day since March. The Nasdaq was down 1%. Digging deeper: - Morgan Stanley basket of profitless tech: -6.5% - MS basket of stocks with high enterprise value to sales ratios (mostly software): -5.7% - ARK Innovation ETF: -4.2% - Breaking down the value gyration, it was less about the long leg surging than the short leg benefiting from the plunge in growth shares. One way to understand these moves is through duration. Investors put money in [loss-making tech stocks]( like Snowflake because they can afford to wait for profits to materialize over the long haul. Their patience wears thinner when real yields are rising, like yesterday. (When ARK’s head of research was last on the Bloomberg Odd Lots [podcast](, I was really struck by how much he emphasized the long horizon, when presumably we’ll all be paying for self-driving flying cars with Bitcoin etc.) Not all tech stocks sank, though. A few big chip stocks seem to have held up better. Notoriously highly valued Tesla actually rose 1.7%. Interestingly, all five of Dow Jones’s market-neutral equity factors were in the green yesterday, including quality and low volatility. So it was a good day for cheap stocks but not for junk, which is not great for your hi-tech pipe dreams. Follow Bloomberg's Justina Lee on Twitter at [@justinaknope]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. 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