Market Optimism Soars as Trump Announces Treasury Secretary Pick
Investors breathed a collective sigh of relief on Monday as President-elect Donald Trump announced his choice for Treasury Secretary, Scott Bessent, sending US stocks soaring. The Dow Jones Industrial Average led the charge, surging approximately 250 points, or 0.6%, to kick off a holiday-shortened week.
Fed’s Inflation Print Takes Center Stage
Markets are eagerly awaiting the release of the Personal Consumption Expenditures (PCE) index on Wednesday, which will provide valuable insights into the Federal Reserve’s next move on interest rates. Economists predict a slight uptick in “core” PCE, a closely watched indicator by the central bank.
Bitcoin Eyes $100,000 Milestone
Meanwhile, bitcoin continued its remarkable ascent, hovering around the $98,000 mark early Monday, as it inches closer to a record-breaking $100,000 per coin level. The cryptocurrency has experienced a staggering 50% surge over the past month.
Stocks Extend Weekly Wins
The Dow Jones Industrial Average closed last week at a record high, gaining almost 2% on the week, while the Nasdaq and S&P 500 both rose over 1.5%. This upward momentum is expected to continue, with investors optimistic about Trump’s economic agenda.
Earnings and Economic Data in Focus
This week, investors will be keeping a close eye on earnings reports from Bath & Body Works, Zoom, and Macy’s, as well as economic data releases, including the Dallas Fed manufacturing activity report. Additionally, the ‘Magnificent 7’ stocks will be closely watched, with Nvidia being the exception, having extended its declines.
Trump’s Treasury Pick Calms Nerves
Bessent’s nomination has brought some much-needed calm to the markets, with the benchmark 10-year Treasury yield dipping back to 4.36%. Investors are now looking ahead to Trump’s inflationary agenda, which is expected to take shape in the coming weeks.
Holiday Trading Schedule
Markets will observe a shortened trading week, with closures on Thursday for the Thanksgiving holiday and early closure on Friday.
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