Wall Street Rallies as Treasury Yields Decline.
Donald Trump’s nomination of Scott Bessent to lead the Treasury Department has shifted investor expectations toward a more balanced fiscal outlook, prompting a rally on Wall Street.
The three major indices closed Monday’s trading session with gains. Stocks advanced as Treasury yields fell sharply, driven by optimism surrounding the president-elect’s latest appointment.
The Dow Jones Industrial Average, comprising 30 major industrial companies, rose 0.99% to close at 44,736.57 points. Meanwhile, the S&P 500, a broader index of 500 companies, gained 0.30% to reach 5,987.37 points, and the tech-heavy Nasdaq Composite climbed 0.27% to 19,054.84.
Treasury yields retreated as U.S. investors speculated that the country’s fiscal trajectory might be more moderate than initially anticipated following Bessent’s nomination. Previously, concerns over a growing deficit fueled by tax cuts had pushed 10-year benchmark yields higher. However, Bessent, a hedge fund manager, is viewed by the market as a potential stabilizing force in shaping fiscal policy.
The Russell 2000, which tracks small- and mid-cap companies, hit a record high as investors bet that Bessent’s role in the administration could mitigate potential adverse effects of Trump’s policies on smaller businesses.
Attention has now shifted to trade policy, with Bessent’s nomination easing fiscal concerns and reassuring markets that a more measured approach may be on the horizon.
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