TLT, Bond ETFs Join Stocks to Cheer Trump Treasury Pick

Stocks climbed while Treasury yields fell Monday as investors cheered Donald Trump’s pick of Scott Bessent for U.S. Treasury Secretary, betting the hedge fund manager will bring a Wall Street perspective to the role.

By midday trading, the Dow Jones Industrial Average had notched an all-time high and the iShares 20+ Year Treasury Bond ETF (TLT) was up 2%, as bond yields and prices have an inverse relationship.

Stock and bond investors are optimistic about Bessent’s nomination for the key cabinet role due to his reputation as a seasoned investor with a deep understanding of macroeconomic strategies.

Bessent’s expertise, honed as a former chief investment officer for Soros Fund Management and founder of Key Square Group, aligns with Wall Street’s expectations for a leader who can skillfully navigate complex financial and economic challenges.

His emphasis on policies promoting U.S. competitiveness, energy production, and a balanced approach to tariffs reassures markets. Bessent’s ability to balance growth-oriented tax cuts with fiscal discipline and his understanding of global financial systems are seen as positives for both equity and fixed-income markets.

This combination has bolstered confidence in his capacity to support stable and favorable economic conditions for investors.

Trump’s Treasury Pick: Who Is Scott Bessent?

In addition to his recent nomination as the United States Secretary of the Treasury by President-elect Donald Trump, Scott Bessent is an American investor and philanthropist, known for his significant contributions to the financial industry.

Early Life and Education

Born in August 1962 in Conway, South Carolina, Bessent is the eldest of three children. He earned a bachelor’s degree in political science from Yale University in 1984, where he was actively involved in campus activities, including serving as an editor for The Yale Daily News and president of the Wolf’s Head Society.

Career and Politics

Bessent’s career in finance includes notable positions such as Chief Investment Officer at Soros Fund Management and founder of Key Square Group, a global macro investment firm. His expertise in macro-investing and economic history has been widely recognized in the industry.

In the political arena, Bessent has been a significant fundraiser and donor for Donald Trump, serving as an economic advisor during Trump’s 2024 presidential campaign before receiving the President-elect’s nod as Treasury Secretary nominee.

Philanthropy and Board Memberships

Beyond his professional achievements, Bessent is actively involved in philanthropy and serves on various boards, including the University Council at Yale University and the Board of Trustees at Rockefeller University. He has endowed scholarships and supported numerous charitable organizations, reflecting his commitment to education and community development.

Bessent’s diverse experiences in finance, politics, and philanthropy underscore his multifaceted contributions to both the financial sector and public service.

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