Traders at the New York Stock Exchange reacted positively on Monday as both the Dow Jones Industrial Average and the S&P 500 reached record highs. This upbeat start to the shortened trading week came after President-elect Donald Trump announced his selection of Scott Bessent, founder of Key Square Group, as Treasury Secretary. The Dow rose by 235 points, or 0.5%, and the S&P 500 gained 0.1%, while the Nasdaq Composite slightly declined by 0.1% due to losses in major technology stocks.
Despite giving up some gains in the afternoon, the Dow had soared over 500 points and the Nasdaq had risen more than 1% earlier in the day. Over 60% of S&P 500 stocks experienced gains, and the Russell 2000 also hit an all-time intraday high with an increase of over 1.5%.
Investors are optimistic about Bessent’s potential to bolster the equity market and possibly moderate some of Trump’s stringent protectionist measures. In a recent interview, Bessent suggested a gradual implementation of tariffs to counterbalance disinflationary pressures. This approach could keep inflation at or below the 2% target, alleviating some market concerns.
Following Bessent’s nomination, Treasury yields and the U.S. dollar index receded, with the 10-year Treasury yield dropping over 11 basis points. This market activity reflects a favorable response to Trump’s decision, described as “textbook” by Quincy Krosby, chief global strategist at LPL Financial. However, the tech sector saw mixed results, with Amazon and Alphabet climbing but Nvidia and Netflix facing declines.
The market’s rally continues after last week’s post-election gains, although trading volume might be light due to the Thanksgiving holiday week. Key economic releases, such as October’s personal consumption expenditure price index and the Federal Reserve’s latest meeting minutes, will be under scrutiny as investors assess the interest rate outlook.
Original Story https://www.cnbc.com/2024/11/24/stock-futures-are-flat-sunday-ahead-of-shortened-trading-week-live-updates.html
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