US stock futures rise as Trump picks Bessent for Treasury role

U.S. stock index futures rose in evening deals on Sunday as Wall Street appeared to be relieved by President-elect Donald Trump nominating prominent investor Scott Bessent as Treasury Secretary. 

Futures were buoyed by a persistent rotation into cyclical and economically sensitive stocks, as markets positioned for more expansionary policies under Trump. But overall gains were limited by weakness in technology, with major chipmaking stocks losing ground.

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. 

Focus this week is on a string of key economic indicators, which are likely to factor into the outlook for interest rates. 

S&P 500 Futures rose 0.4% to 6,008.0 points, while Nasdaq 100 Futures rose 0.4% to 20,937.0 points by 18:22 ET (23:22 GMT). Dow Jones Futures rose 0.5% to 44,618.0 points.  Wall St relived by Bessent for Treasury secretary 

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 dire trade war under a Trump administration. 

The dollar slid 0.6% after Bessent’s nomination, while Treasury yields- which have been a point of pressure on Wall Street- also fell sharply, with the 10-year rate losing 1.4%. 

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.  Wall St upbeat with PCE data in focus 

Sunday’s gains in futures came following a positive session on Wall Street on Friday, as investors shifted further into cyclical stocks and away from technology.

The Dow Jones Industrial Average outpaced its peers, rising nearly 1% to finish at 44,296.51 points on Friday. The S&P 500 rose 0.4% to 5,969.30 points, while the NASDAQ Composite lagged, rising 0.2% to 19,003.65 points. 

Trump's promises of tax breaks and U.S.-centric policies saw investors favoring stocks with more exposure to the U.S. economy. Plays out of tech stocks were also furthered by a somewhat middling earnings outlook from market darling NVIDIA Corporation (NASDAQ:NVDA ) last week.

Focus this week is squarely on upcoming PCE price index data, which is the Federal Reserve’s preferred inflation gauge. The reading is set to offer more cues on the path of interest rates and comes amid some doubts over whether the central bank will cut interest rates in December.

Source: Investing.com