Trump’s Treasury pick boosts stock market

Now is one of the stronger times of the year for stocks. pic.twitter.com/Hh4kA7xx6V

— Ryan Detrick, CMT (@RyanDetrick) November 26, 2024

The stock market rallied on Monday as investors reacted positively to President-elect Donald Trump’s nomination of Scott Bessent for Treasury Secretary. The Dow Jones Industrial Average surged 440.06 points, or 0.99%, closing at a new record high of 44,736.57. The S&P 500 rose 0.3% to finish at 5,987.37, while the Russell 2000 jumped 1.47%, reaching an all-time high. Bessent, the founder of Key Square Group, is expected to support economic growth without triggering significant inflation. His appointment is a stabilizing factor amid concerns over Trump’s protectionist policies. Quincy Krosby, chief global strategist at LPL Financial, described the market’s reaction to Bessent’s appointment as textbook positive.

The past 10 times the S&P 500 was up 20% or more YTD heading into December saw stocks higher in December nine times.

Avg gain of 2.4% vs avg December gain of 1.5%.

Don't give up on the bull just yet. pic.twitter.com/kDH0Stoyhn

— Ryan Detrick, CMT (@RyanDetrick) November 25, 2024

While significant indexes fared well, extensive technology stocks offered a mixed performance.

📈#Nifty closed slightly in red after 2 session of advances

Here's how the markets panned out today!👇#StockMarketUpdate #StockMarketIndia #Stockmarkets #StockMarket #stockmarketnews pic.twitter.com/HuyfU7HWXi

— ET NOW (@ETNOWlive) November 26, 2024

These stocks have seen a resurgence post-election but had recently paused amid concerns about rising yields and potential inflation from Trump’s policies. U.S. markets will be closed on Thursday for Thanksgiving and will have shortened trading hours on Friday. Consequently, trading volume is expected to be light.

Sensex Today | Stock Market LIVE Updates: Sensex down 250 points, Nifty below 24200; auto, pharma under pressurehttps://t.co/3J6mAaZ94U

— ET NOW (@ETNOWlive) November 26, 2024

Investors will focus on Wednesday’s release of October’s personal consumption expenditures price index and the Federal Reserve’s meeting minutes.

Market reacts to Bessent’s appointment

Investment analysts forecast a typical “post-Thanksgiving dip” followed by a year-end rally. Historically, the S&P 500 shows slight dips in the week following Thanksgiving, averaging a 0.01% decrease. However, the period from Thanksgiving to the end of the year has been up 71% of the time, with an average gain of nearly 1.5%. Sam Stovall, chief investment strategist at CFRA Research, noted the bullish sentiment heading into the holiday season. “Maybe the bulls will have Thanksgiving and Christmas this year,” Stovall commented. Regional banks performed strongly, pushing indexes to new highs as bond prices strengthened and fixed-income yields fell. The S&P 1500 regional bank sub-index was up over 2% to its highest level since April 2022, gaining significant momentum in November and throughout 2024. Homebuilding stocks also saw gains due to the decline in Treasury yields, which could lead to lower mortgage rates. Major homebuilders such as Lennar and PulteGroup experienced notable gains. The market remains bullish as investors are confident in Bessent’s fiscal policies. This optimism is expected to carry through the holiday-shortened week and potentially into the new year, as historical data suggests favorable market conditions post-Thanksgiving.