Stocks have predominantly advanced during Monday's trading session, building on the robust gains from last week. With this upward momentum, the Dow Jones Industrial Average and the S&P 500 have reached new record intraday highs.
Currently, the major indices are off their session highs but remain in positive territory. The Dow has increased by 404.73 points, or 0.9%, to 44,701.25. The Nasdaq has risen by 86.12 points, or 0.5%, to 19,089.77, and the S&P 500 has grown by 22.56 points, or 0.4%, to 5,991.90.
Wall Street's continued strength is driven by a favorable response to the news that President-elect Donald Trump plans to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary.
Known for his support of equity markets and advocacy for deficit reduction, Bessent has also proposed a gradual implementation of Trump’s planned tariff increases, potentially mitigating their inflationary impact.
"A hedge fund manager like Scott Bessent is seen as a safe and conventional choice," noted Russ Mould, Investment Director at AJ Bell. "Crucially, Bessent is perceived to be less aggressive on tariffs compared to some of Trump's campaign rhetoric."
Mould further commented, "A decline in bond yields following his announcement suggests that concerns over potential inflationary pressures from tariffs have diminished and that Bessent might effectively address the U.S. deficit issue."
However, investors appear hesitant to make more substantial moves ahead of the release of several significant economic reports in the coming days.
Of particular interest will be the report on personal income and spending for October, which includes the Federal Reserve’s preferred inflation metrics.
Reports on consumer confidence, new home sales, and durable goods orders will also be closely watched, alongside the minutes from the Fed’s latest monetary policy meeting.
**Sector News**
Housing stocks have surged, driven by a steep drop in Treasury yields, culminating in a 4.9% spike in the Philadelphia Housing Sector Index.
Remarkable strength is also noted in the computer hardware sector, with the NYSE Arca Computer Hardware Index climbing by 4.2% to reach a four-month intraday high.
Airline stocks have shown significant upward movement, pushing the NYSE Arca Airline Index up by 3.1%.
Biotechnology, commercial real estate, and networking stocks are also exhibiting significant strength, while gold stocks have tumbled in tandem with the precious metal's price decline.
**Other Markets**
In international markets, Asia-Pacific stock performances were mixed on Monday. Japan’s Nikkei 225 Index jumped 1.3%, whereas China’s Shanghai Composite Index marginally decreased by 0.1%, and Hong Kong’s Hang Seng Index declined by 0.4%.
Conversely, European markets have experienced overall gains. The U.K.'s FTSE 100 Index has increased by 0.5%, Germany's DAX Index by 0.4%, and France's CAC 40 Index by 0.1%.
In the bond market, treasuries have sharply gained in response to Trump's Treasury Secretary nomination. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, has declined by 12.1 basis points to 4.289%.
