Dow jumps as Trump's pick for Treasury stokes market optimism

The Dow rose sharply Monday as investors cheered President-elect Donald Trump nominating prominent investor Scott Bessent as Treasury Secretary. 

At 12:57 ET (1757 GMT), the Dow Jones Industrial Average rose 289 points, 0.7 %, the S&P 500 index rose 0.1%, and the NASDAQ Composite rose 0.1%.   Wall Street relieved by Bessent's nomination 

Bessent’s nomination helped clear a major point of uncertainty for markets, given that the Treasury Secretary role is one of the most influential in the cabinet for economic and trade regulations.

Bessent is a career investor who has called for tax reforms and deregulation for U.S. firms. He has also opposed overly strict trade tariffs, lessening the prospect of a costly trade war under a Trump administration. 

The dollar retreated after Bessent’s nomination, while Treasury yields - which have been a point of pressure on Wall Street - also fell sharply. 

Bessent’s nomination came amid a flurry of cabinet picks by Trump. The President-elect chose Fox News commentator Pete Hegseth as Defense Secretary, Howard Lutnick as Commerce Secretary and China hawk Mike Waltz as National Security Adviser. 

Broader market sentiment was also boosted by reports that Israel was close to reaching a ceasefire with military group Hezbollah in Lebanon, potentially marking some deescalation in the long-running Middle East conflict.  PCE data in focus 

The focus this week is squarely on upcoming PCE price index data, which is the Federal Reserve’s preferred inflation gauge.

Economists are expecting the PCE index to have risen 2.3% annually in October.

While the U.S. is due to release November data on both consumer and producer prices before the Fed’s next meeting on Dec. 17-18 this will be the final PCE report before then.

Recent stubborn inflation data has seen the Fed take a cautious stance towards further interest rate cuts, casting doubt over whether the central bank will cut interest rates in December. Bath & Body Works lifts full-year guidance; Macy's slips after Q3 delay 

In the corporate sector, retailers will be in the spotlight, with the US Thanksgiving holiday on Thursday and the following Black Friday marking the start of the holiday shopping season.

Bath & Body Works (NYSE:BBWI ) stock soared 14% after the personal care and home fragrance company raised its full-year guidance after reporting strong third-quarter results.

Macy’s (NYSE:M ), on the other hand, stock fell more than 3% after the retail giant announced a delay to its third-quarter release, citing an accounting issue. Also, sales in its preliminary results disappointed, as steep promotions failed to attract customers who have turned selective on purchases.

Intel Corporation (NASDAQ:INTC ) rose more than 1% after the Wall Street Journal reported that the chipmaker and the Commerce Department are close to finalizing a $8B grant for the company as part of the CHOPS and Science Act. 

The report comes just hours after Bloomberg reported, citing sources, that Lattice (OTC:LTTC ) Semiconductor was mulling an offer for Intel's Altera unit. A potential offer could complicate Intel's plans to sell a minority stake in Altera.

 

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com