Wall Street starts the week on the rise amid high expectations for the election of Donald Trump, president-elect, of Scott Bessent as Secretary of the Treasury. Investors are also anticipating a favorable inflation report from the Federal Reserve (Fed).
The Dow Jones Industrial Average leads the advance and climbs about 250 points, or approximately 1.6%. The S&P 500 climbed 0.6%, while the Nasdaq Composite, with a high technological component, advanced almost 0.7%.
Stocks enter a Thanksgiving-shortened week on Thursday with the same optimism that propelled indexes to weekly gains. Markets will be closed on Thursday and close early on Friday.
The background of Wall Street
The Dow closed last week at a record level, after gaining almost 2% for the week. The Nasdaq and S&P 500 rose more than 1.5% as they approached initial levels seen after the election.
Trump chose Bessentconsidered the “investor favorite” for the Treasury, on Friday afternoon, after a very long process in which the candidates’ options seemed to change every day. Bessent’s nomination at least temporarily calmed concerns about the president-elect’s inflation agenda, with the benchmark 10-year Treasury yield (^TNX) falling back to 4.4%.
Scott Bessent is an investor and financial executive recognized for his strategic approach and successful career in the world of finance. Throughout his career, he worked at several high-profile institutions, including managing hedge funds and working in the global investment sector. One of the highlights of his career was his role as investment director at the Soros Foundationwhere he managed large sums of money with a focus on global assets.
The market “loves” him primarily for his reputation as a highly successful investor and his ability to generate consistent returns even in times of economic uncertainty. His focus on rigorous analysis and prudent risk management has earned him the trust of many investors and analysts.who see him as a figure capable of making solid and well-founded economic decisions.
Bessent is also appreciated for his pragmatic style and his ability to navigate through volatile markets, which has allowed him to build a reputation as “favid investors“This positive perception has been crucial in his selection for the position of US Secretary of the Treasury by Donald Trump, as he is considered to can provide stability and experience to the management of the country’s economic policy. Furthermore, his moderate approach on monetary and inflationary policies has been seen as a relief to markets, especially in a context of uncertainty regarding the economic direction of the incoming administration.
As for inflation, the Federal Reserve will get its preferred view of the outlook for Trump’s term with the release of the Personal Consumption Expenditure (PCE) index on Wednesday. Economists expect a slight increase in the “core” PCE, which is closely monitored by the central bank.
Source: Ambito
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