Wall Street Sees Gains Following Trump's Pick of Bessent for Treasury

U.S. stock markets saw gains on Monday following President-elect Donald Trump’s nomination of Scott Bessent to head up the Department of the Treasury on Friday.

What Are Analysts Saying?

The S&P 500 climbed 0.8 percent in early trading, as it is on pace to edge past its all-time high set earlier this month. The Dow Jones Industrial Average added 459 points, or 1 percent, to extend its record-breaking streak, while the tech-heavy Nasdaq Composite also rose by 1 percent.

Analysts attributed the movement to a “Bessent bounce,” after Trump nominated hedge fund manager Bessent for treasury secretary.

Bessent has advocated for reducing the U.S. government’s deficit, which is how much more it spends than it takes in through tax and other revenue. This approach could soothe worries that Trump’s policies may lead to a much bigger deficit, which in turn would put upward pressure on Treasury yields.

Eyes on Treasury Yields

The 10-year Treasury yield fell to 4.30 percent from Friday’s 4.41 percent, marking a significant retreat from the post-election spike above 4.44 percent. This decline could lower borrowing costs for businesses and consumers alike, while also bolstering stock prices.

Meanwhile, the two-year Treasury yield also dropped, reflecting shifting expectations about Federal Reserve rate cuts in 2025.

Investors are now closely eyeing an upcoming inflation report set for Wednesday, which could shape the Fed’s monetary strategy. Economists expect an uptick in the Fed’s preferred inflation measure to 2.8 percent in October from 2.7 percent in September. Elevated inflation levels may limit the Fed’s ability to deliver aggressive rate cuts next year.

On Wall Street, standout performances included Bath & Body Works, which soared 21 percent after exceeding profit expectations and raising its annual outlook despite a “volatile retail environment.” This optimism stood in contrast to Target‘s recent struggles with sluggish sales, while Walmart delivered a more encouraging forecast.

While Macy’s said its sales for the latest quarter were in line with its expectations, it will delay the release of its full financial results after it found an employee hiding up to $154 million in delivery expenses. The retailer’s stock dropped 3.8 percent, highlighting the ongoing pressures in the retail sector.

In the crypto world, bitcoin was close to hitting a $100,000 milestone, trading at $97,000 following last week’s rally.

Global Markets Mixed

Global markets showed mixed results, with modest gains across Europe and a varied performance in Asia, reflecting a cautiously optimistic global sentiment.

This article includes reporting from The Associated Press.