The New York Stock Exchange finished higher on Monday, gaining momentum at the start of a week marked by the appointment of Scott Bessent to take the reins of the US Treasury.
The Dow Jones index gained 0.99% and set a new record at the close, while the technology Nasdaq gained 0.27% and the broader S&P 500 index gained 0.30%.
“There has been relief after this Treasury pick, which calmed the market,” said Angelo Kourkafas of Edward Jones.
US President-elect Donald Trump announced Friday that he plans to nominate Scott Bessent as Treasury secretary once he takes office.
Bessent, 70, spent nearly 15 years with financier George Soros before creating his own investment company, Key Square Group, a career that brought him into the inner circle of Wall Street.
For Will Compernolle of FHN Financial, Bessent “will lead the Treasury with a firm hand.”
Operators have thus calmed their fears of seeing a candidate willing to increase debt, which would probably reactivate inflation, explains Angelo Kourkafas.
The bond market reacted and the yield on 10-year US government bonds fell to 4.27%, down from 4.40% at Friday’s close.
Operators have revised their expectations on monetary policy and see a scenario with at least three additional rate cuts by the Federal Reserve (Fed, central bank) until the end of 2025, compared to two on Friday.
This “has helped the stocks,” Angelo Kourkafas stressed, predicting that nothing could “change the positive mood of the market” this week.
#Wall #Street #closes #higher #Dow #Jones #record
