U.S. benchmark indices refreshed record highs on Monday (Tuesday AEDT) as investors cheered President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary. Bessent, founder of Key Square Group, is seen as a market-friendly choice likely to support equity markets while mitigating some of Trump’s more protectionist trade policies.
The Dow Jones Industrial Average soared 440 points or 1%, reaching a record high of 44,736.6 as a broad stock rally swept U.S. markets. The S&P 500 hit a new intraday high, advancing 0.3% alongside the Nasdaq Composite. The small-cap Russell 2000 index outperformed, surging nearly 2% to set a fresh record, eclipsing its previous peak from 2021.
The nomination prompted a drop in Treasury yields and the U.S. dollar index, with the 10-year Treasury yield down over 14 basis points to 3-week lows of 4.269%.
Technology stocks delivered mixed results, with Amazon and Alphabet advancing 2.2% and 1.7%, respectively, while Nvidia and Netflix slipped 4.2% and 3.6%, respectively.
With U.S. markets closing for Thanksgiving on Thursday and shortened trading hours on Friday, investors are turning their attention to economic data.
Key releases this week include October's personal consumption expenditure price index, the Federal Reserve's preferred inflation gauge, and the minutes from the Fed's most recent meeting, both set for Wednesday.