US stocks rallied on Monday, with major indexes hitting record highs, while Asia-Pacific markets fell. President-elect Donald Trump’s pick for US Treasury secretary, Scott Bessent, has received praise from Wall Street and global analysts alike.
Bessent, founder of hedge fund Key Square Group, is seen as a Wall Street-friendly candidate who prioritizes controlling inflation. His nomination has sparked optimism among investors, with the S&P 500 rising 0.3%, the Dow Jones Industrial Average climbing 0.99%, and the Nasdaq Composite adding 0.27%.
Small-cap stocks have also performed well, driven by Bessent’s support for Trump’s economic agenda. The Russell 2000 index of small- and mid-caps gained 1.47%, its sixth positive session in a row.
The bond market has reacted positively to the news, with the yield on the 10-year Treasury falling over 14 basis points. Global analysts see Bessent’s pick as favorable for markets, contributing to a risk-on mood that has driven gold prices down around 3% to $2,616.80 per ounce.
Trump vowed to raise tariffs on Chinese imports by an additional 10% and implement a 25% tariff on goods coming from Mexico and Canada. If implemented, this would end a trade deal between the three countries.
Source: https://www.cnbc.com/2024/11/26/cnbc-daily-open-investors-endorse-trumps-treasury-secretary-pick.html