US Stocks Rally as Scott Bessent Tapped for Treasury Role
On Monday, U.S. stocks surged as investors applauded President-elect Donald Trump’s choice of well-known investor Scott Bessent to serve as Treasury Secretary. The S&P 500 index increased 48 points, or 0.8%, the Dow Jones Industrial Average increased 500 points or 1.1%, and the NASDAQ Composite increased 180 points, or 1%, today. Reports that Israel was nearing a truce with the militant organization Hezbollah in Lebanon, which would signal some de-escalation in the protracted Middle East conflict, also improved sentiment in the broader market.
Bessent’s Treasury Nomination Eases Market Uncertainty Amid Trump’s Cabinet Picks
Given that the Treasury Secretary position is one of the most powerful in the cabinet for trade and economic laws, Bessent’s selection eased a significant area of market ambiguity. Throughout his career, Bessent has advocated for deregulation and tax reforms for American companies. Additionally, he has resisted excessively high trade tariffs, reducing the likelihood of an expensive trade war during a Trump presidency.
Following Bessent’s nomination, the dollar declined, and Treasury yields, which have been a source of pressure on Wall Street, also experienced a significant decline. Bessent’s nomination coincided with Trump’s rush of cabinet appointments. The president-elect appointed China hawk Mike Waltz as National Security Advisor, Howard Lutnick as Commerce Secretary, and Fox News pundit Pete Hegseth as Defense Secretary.
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