Wall Street responded euphorically Monday morning to the news that former Treasury Secretary Lawrence H. Summers withdrew from the race to become head of the Federal Reserve.
The Dow Jones Industrial average rose 165 points, or more than 1 percent, in the first hour of trading Monday, and the Nasdaq was up sharply as well. Mr. Summers had been expected to move more aggressively than other potential nominees to curtail the Fed’s current economic stimulus program under Chairman Ben S. Bernanke.
President Obama is expected to nominate Mr. Bernanke’s successor as early as this month. The current front-runner is Janet Yellen, the Fed’s vice chair.