Traders work on the floor of the New York Stock Exchange on November 7, 2022.
Brendan McDiarmid | Reuters
The broad rise in stocks led to a push Dow Jones Industrial Average, Standard & Poor's 500 Small business focus Russell 2000 Pointing to new records on Monday. Investors are betting that President-elect Donald Trump's choice for Treasury Secretary, Scott Besent, will help steer the economy without sparking inflation.
The Dow Jones Industrial Average rose 440.06 points, or 0.99%, to 44,736.57 points. The S&P 500 rose 0.3% to close at 5,987.37. Both posted all-time highs in the session, while the latter also posted a new record closing high. the Nasdaq Composite It rose by 0.27%, and ended the day at 19,054.84.
Monday had a broad lead as investors cheered Trump's decision to nominate Bescent, founder of Key Square Group. The Russell 2000 jumped 1.47% and surpassed its previous all-time high in 2021 at session highs. More than 3 in 4 stocks in the S&P 500 index traded higher during the session.
Investors see a hedge fund manager as someone who will support the stock market. They believe it may also help mitigate some of Trump's more extreme protectionist policies, such as his stance on taxing imports.
“I would recommend that the tariffs be imposed gradually,” Besant told CNBC in an interview earlier this month before he was selected. “If you take this price adjustment along with all the other deflationary things that President Trump is talking about, we will be at or below the 2% inflation target again.”
Russell 2000
Treasury revenues and US dollar index He was pulled after Bessent was selected late Friday. In reality, Treasury for 10 years The yield fell by more than 14 basis points in Monday's session. These moves, along with Monday's stock market gains, show a “textbook” positive reaction to Trump's decision, according to Quincy Crosby, chief global strategist at LPL Financial.
“You couldn't ask for a better reception from the market,” Crosby said. “This is the market applauding.”
Big Tech, on the other hand, has been a mixed bag. while Amazon and alphabet She raised her legs, Nvidia and Netflix decreased.
Monday's actions add to the narrative that last week's gains have revived the post-election rally. After rising following the end of the presidential race, the rise stopped as concerns increased about rising yields and the possibility of inflation due to Trump's policies.
US markets are dark on Thursday due to the Thanksgiving holiday and close early on Friday, so trading volume will likely be light this week. During the short trading week, the focus will likely be on interest rate expectations.
Investors will be watching the release of the October personal consumer spending index, the Fed's preferred measure of inflation, on Wednesday. Minutes from the Federal Reserve's final policy meeting before Thanksgiving are also scheduled to be released.
