Wall St Soars to New Heights: Small-Caps Hit Record High as Trump Nominates Game-Changer Bessent
Barclays has increased its full-year forecast for the S&P 500, reflecting optimism in the U.S. financial markets as Wall Street’s main indexes closed higher on Monday. This uplift follows Scott Bessent’s nomination as U.S. Treasury Secretary, a move seen as potentially easing fiscal concerns and driving bond yields lower. The small-cap Russell 2000 index, in particular, soared to an all-time high. Rising expectations of a ceasefire between Israel and Lebanon contributed to lower oil prices and dragged the Energy index down. Meanwhile, with President-elect Donald Trump appointing Bessent, strategists suggest he might curtail government borrowing while pursuing fiscal and trade policies. Market confidence is also buoyed by the GOP’s business-friendly agenda under Trump. The Federal Reserve’s recent rate cuts have further supported small-cap and mid-cap stocks, previously lagging sectors that are now outperforming. While Consumer Discretionary stocks, led by Amazon, saw gains, Macy’s stock plummeted after delaying its Q3 report due to accounting issues. Despite the gains, inflation concerns linger, potentially affecting the Fed’s December rate decision. Investors await the Personal Consumption Expenditure report, set for release amid the Thanksgiving holiday. Meanwhile, Deutsche Bank has set its S&P 500 target at 7,000 points by the end of 2025, betting on future market growth.
Original Story https://www.livemint.com/news/world/wall-st-closes-higher-small-caps-hit-record-high-after-trump-nominates-bessent-11732568533552.html
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