A broad stock rally led to new record highs for the Dow Jones Industrial Average, S&P 500, and Russell 2000 index on Monday.
Investors reacted positively to President-elect Donald Trump’s nomination of Scott Bessent for Treasury secretary, believing he would foster economic growth without inflation.
The Dow rose 420 points, or 1%. The S&P 500 climbed 0.3%, while the Nasdaq Composite increased by 0.3%. The Russell 2000 surged 2%, exceeding its previous high from 2021. Approximately 80% of S&P 500 stocks saw gains.
Market participants view Bessent, founder of Key Square Group, as supportive of equity markets and potentially moderating Trump’s protectionist policies.
Treasury yield
Following the nomination, Treasury yields and the U.S. dollar index fell, with the 10-year Treasury yield dropping over 14 basis points. This market response indicates a favorable shift, according to Quincy Krosby from LPL Financial.
Krosby stated that the market’s reaction demonstrates strong approval of the nomination.
In contrast, big technology stocks exhibited mixed results. While Amazon and Alphabet saw gains, Nvidia and Netflix experienced declines.
