The Dow Jones Industrial Average, S&P 500, and small-cap-focused Russell 2000 index all set new marks on Monday as a result of a wide stock rise. Investors wagered that Scott Bessent, the Treasury secretary nominee of President-elect Donald Trump, would steer the economy without causing inflation.
The blue-chip Dow increased by 0.99%, or 440.06 points, to 44,736.57. The broad S&P 500 ended the day at 5,987.37, up 0.3%. During the session, both reached new all-time highs, and the Dow closed at a new record close as well. The Nasdaq Composite ended the day at 19,054.84, up 0.27%.
As markets applauded Trump’s choice to select Besset, the founder of Key Square Group, Monday saw a wide increase. At session highs, the Russell 2000 surged 1.47% and overtook a previous all-time high achieved in 2021. Over three of every four S&P 500 equities had gains during the day.
Hedge fund manager Bessent is viewed by investors as someone who will help the stock market. They think he might also assist in lessening some of Trump’s most radical protectionist measures, such his position on import taxes.
Before he was chosen, Bessent told CNBC earlier this month that he would suggest gradually layering in tariffs. We will once more be at or below the 2% inflation target if you combine that price adjustment with all the other deflationary measures President Trump is mentioning.
After the Bessent pick late Friday, Treasury yields and the US dollar index declined. In fact, during Monday’s session, the 10-year Treasury yield fell more than 14 basis points. The chief global strategist at LPL Financial, Quincy Krosby, said that these actions, along with the day’s advances in the share market, demonstrate a classic favorable response to Trump’s decision.
“You couldn’t ask for a better market reception,” Krosby added. The market is cheering this.
However, big technology was more of a mixed bag. Netflix and Nvidia dipped, while Amazon and Alphabet closed higher.
The story that last week’s gains have rekindled the postelection surge is strengthened by Monday’s action. Following a spike following the end of the presidential contest, the rise had slowed as concerns about growing rates and the possibility of inflation brought on by Trump’s ideas took hold.
Due to the Thanksgiving holiday, U.S. markets are closed on Thursday and close early on Friday, so this week’s trading activity is probably going to be low. The interest rate outlook is probably going to be the main focus of the abbreviated trading week.
Investors will keep an eye on Wednesday’s release of the Federal Reserve’s favorite inflation indicator, the October personal consumption expenditure price index. Ahead of Thanksgiving, the Fed’s most recent policy meeting minutes are also forthcoming.
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