Stocks Join Bonds Higher on Trumps Treasury Pick – US Market Wrap

Stocks rose alongside bonds, while the dollar fell, as traders welcomed Donald Trump’s nomination of Scott Bessent for Treasury Secretary, betting that the hedge-fund manager will bring a Wall Street perspective to the position.

The S&P 500 briefly reached 6,000 before paring gains. Small caps, which typically operate domestically, closed within striking distance of their all-time high. Treasuries rallied across the US curve, led by longer maturities. Bitcoin fell after a rally towards $100,000 fizzled just short of the historic high. Oil prices fell as Israel moved closer to a cease-fire with Hezbollah.

Markets began the week on a risk-on note, as Bessent is well-versed in global financial systems, which appealed to investors. And, while he has stated that he will support the president-elect’s tariff plans and fight to extend Trump’s tax cuts, Bessent is not known as an ideologue, raising Wall Street expectations that he will prioritize economic and market stability over political points.

The S&P 500 increased by 0.3%. The Nasdaq 100 gained 0.1%. The Dow Jones Industrial Average rose 1%. Amazon rallied, while Nvidia and Tesla declined. Macy’s plunged after delaying earnings as an investigation revealed a worker’s millions in expenses.

The yield on 10-year Treasuries fell 14 basis points, to 4.26%. The Dollar Index declined 0.5%.