TLDR:
- Trump names Scott Bessent as Treasury Secretary, causing Dow futures to hit record high with 0.68% increase
- Bessent is viewed as a fiscal conservative with background in FX trading and fixed income
- S&P 500 crossed 6,000 points post-election, jumping over 4% since Nov. 4
- Bitcoin approaches $100,000, boosting crypto stocks like MicroStrategy (+6%) and MARA Holdings (+4.6%)
- Astera Labs emerges as the new leader in AI chip stocks, surpassing Nvidia
U.S. financial markets showed strong momentum on Monday as investors responded positively to President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary. The Dow futures touched a record high, rising 302 points or 0.68% in early trading, while S&P 500 futures gained 0.48% and Nasdaq 100 futures increased by 0.55%.
The appointment of Bessent, announced late Friday, ended weeks of market speculation. Bessent brings extensive experience in foreign exchange trading and fixed income markets to the role, qualities that many market participants view as crucial for managing the nation’s finances.
Joe McCann, CEO at Asymmetric in Miami, expressed optimism about the nomination. “The beauty of this nomination is that Bessent is a fiscal conservative,” McCann said. “Now this sets the stage for more fiscal discipline, which the market is really going to welcome.”
The positive market reaction extended beyond large-cap stocks. Small-cap companies, which are more sensitive to domestic economic conditions, saw their futures rise by 1.2%. This broader market participation suggests investors believe the benefits of Bessent’s appointment could reach across multiple sectors of the economy.
Major banks showed notable gains in premarket trading. Wells Fargo rose 1.1%, while Morgan Stanley added 1.2%. Tesla, often considered a ‘Trump trade’ stock, increased by 2%. Tech giants weren’t left behind, with both Alphabet and Amazon.com climbing 0.75% each.
The cryptocurrency sector also demonstrated strength, with Bitcoin prices approaching the $100,000 mark. This surge lifted crypto-related stocks, including MicroStrategy, which advanced 6%, and MARA Holdings, which gained 4.6%. Coinbase shares added 1.4% in early trading.
In the technology sector, a notable shift occurred as Astera Labs emerged as the new leader in AI chip stocks, challenging Nvidia’s long-standing dominance. Nvidia’s stock remained flat after recent earnings, while Astera Labs continued its upward trajectory.
The broader S&P 500 index has shown remarkable strength since the election, crossing the 6,000-point threshold for the first time and gaining more than 4% since November 4. The Russell 2000 index, which tracks smaller companies, has performed even better, surging more than 8% during the same period.
Brokerage firm Barclays responded to the market strength by raising its full-year 2025 forecast for the S&P 500 to 6,600 points from 6,500, reflecting growing confidence in the market’s trajectory.
The Treasury bond market also reacted to the news, with yields declining across various maturities. The movement in bond yields suggests investors are adjusting their expectations about future inflation and Federal Reserve policy.
Looking ahead, market participants are focusing on several key economic reports due this Thanksgiving week. These include the Personal Consumption Expenditure report, which serves as the Federal Reserve’s preferred inflation gauge, and the latest estimate of gross domestic product.
The Federal Reserve’s December meeting remains a point of focus for investors. Current market pricing, as shown by the CME Group’s FedWatch Tool, indicates a 56.2% probability of a 25-basis-point rate cut.
In other market news, Peabody Energy shares dropped 5.1% following Anglo American’s decision to sell its Australian steelmaking coal mines to the company for up to $3.78 billion in cash. Meanwhile, Snowflake saw a 3.6% increase after receiving an upgraded rating from Wedbush.
Trading activity suggests investors are particularly interested in companies that could benefit from the new Treasury leadership. Financial sector stocks have seen increased attention, with traders positioning themselves for potential regulatory changes under Bessent’s leadership.
The market’s response indicates that investors view Bessent’s appointment as a positive development for both Wall Street and Main Street. His background in global markets and reputation for fiscal discipline appear to be key factors driving investor confidence.
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