Stocks surge on Monday with Dow, S&P 500, and Russell 2000 setting fresh records amid economic bets
On Monday, a broad stock rally propelled the Dow Jones Industrial Average, S&P 500, and Russell 2000 index to new records, as reported by CNBC.
Investors reacted positively to President-elect Donald Trump’s decision to nominate Scott Bessent as Treasury secretary, anticipating his economic guidance without sparking inflation.
The Dow Jones climbed 440.06 points, or 0.99 percent, to 44,736.57, setting a new record close. The S&P 500 gained 0.3 percent to 5,987.37, also marking an all-time high. The Nasdaq Composite rose 0.27 percent to end at 19,054.84.
The small-cap-focused Russell 2000 surged 1.47 percent, surpassing its previous record from 2021 during session highs. More than three-quarters of S&P 500 stocks posted gains.
Bessent, the founder of Key Square Group, is viewed by investors as supportive of the US equity market and potentially able to temper some of Trump’s more extreme protectionist policies, such as taxing imports.
Speaking to CNBC earlier this month, Bessent suggested a gradual approach to implementing tariffs, stating, “If you take that price adjustment coupled with all the other disinflationary things President Trump is talking about, we’re going to be at or below the 2 percent inflation target again.”
Following the announcement, Treasury yields, and the US dollar index retreated. The 10-year Treasury yield dropped by over 14 basis points during Monday’s session.
Quincy Krosby, chief global strategist at LPL Financial, described the market’s reaction as a “textbook” positive response to the nomination, adding, “This is the market applauding.”
Big technology stocks experienced mixed results. While Amazon and Alphabet closed higher, Nvidia and Netflix saw declines.
Monday’s rally builds on gains from the previous week, reigniting the postelection market surge that had slowed amid concerns about rising yields and potential inflation linked to Trump’s policies.
Trading volume is expected to remain light this week due to the Thanksgiving holiday, with US markets closed Thursday and operating on shortened hours Friday.
Investors are expected to focus on US interest rate outlooks during the week.
Key economic data includes October’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, and minutes from the Fed’s most recent policy meeting, both set for release on Wednesday.
