The benchmark equity indices rallied to fresh highs after Jerome Powell’s selection as the Fed Chair for a second term this week. And the U.S. economic recovery has again picked up the pace, with a strong recovery in the labor market. However, since Treasury yields are rising, it could be wise to bet on undervalued stocks. To that end, we think ArcelorMittal (NYSE:MT), Silicon Motion (NASDAQ:SIMO), and Genesco (NYSE:GCO) could be solid bets now. Read on.President Biden selected Jerome Powell to lead the Federal Reserve for a second term. The announcement on Monday morning drove the benchmark indices higher. Stocks have also received a boost from solid third-quarter corporate earnings, with collective S&P 500 corporate profits improving 42.3% year-over-year to $ $452.9 billion.
The economic recovery has regained its momentum, as is evident in the reduction in jobless claims to near pre-pandemic levels. Jobless benefits declined to a 20-month low in early November.
However, the tech-heavy Nasdaq Composite declined on Tuesday, as a rise in Treasury yields prompted investors to buy stocks. Hence, with the low-interest-rate environment continuing, we think it could be wise to invest in fundamentally sound stocks ArcelorMittal (MT), Silicon Motion Technology Corporation (SIMO), and Genesco Inc . (GCO). Each name looks undervalued at its current price levels.