U.S. Stocks May See Further Upside On Trump’s Choice Of Bessent For Treasury

After turning in a strong performance last week, stocks are likely to see further upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.

Stocks may benefit from a positive reaction to news President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary.

Bessent is seen as supportive of the equity markets and an advocate for deficit reduction. He has also called for Trump’s planned tariff increases to be implemented gradually, which could reduce the impact on inflation.

“Hedge fund manager Scott Bessent is perceived as being a relatively conventional and safe pair of hands candidate,” said AJ Bell investment director Russ Mould. “Importantly, Bessent is seen as being less aggressive on tariffs than some of the rhetoric espoused by Trump on the campaign trail.”

He added, “A fall in bond yields in response to his unveiling suggests some of the concern about a new wave of inflationary pressures from import tariffs has eased and that Bessent might be able to do something to bring the U.S. deficit under control.”

Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of several key economic reports in the coming days.

A report on personal income and spending the month of October is likely to be in the spotlight, as it includes the Federal Reserve’s preferred inflation readings.

Reports on consumer confidence, new home sales and durable goods orders are also likely to attract attention along with the minutes of the Fed’s latest monetary policy meeting.

Extending the upward move seen over the course of Thursday’s session, stocks saw continued strength during trading on Friday. The Dow led the way higher once again, reaching a new record closing high.

The major averages all ended the day in positive territory, with the Dow jumping 426.16 points or 1.0 percent to 44,296.51. The S&P 500 also climbed 20.63 points or 0.4 percent to 5,969.34, while the Nasdaq rose 31.23 points or 0.2 percent to 19,003.65.

With the continued upward move, the major averages posted strong gains for the week, partly offsetting the sharp pullback seen last week.

For the week, the Dow surged by 2.0 percent, while the Nasdaq and the S&P 500 both shot up by 1.7 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while China’s Shanghai Composite Index edged down by 0.1 percent and Hong Kong’s Hang Seng Index fell by 0.4 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 0.5 percent, the U.K.’s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.2 percent.

In commodities trading, crude oil futures are slipping $0.16 to $71.08 a barrel after jumping $1.14 to $71.24 a barrel last Friday. Meanwhile, after surging $37.30 to $2,712.20 an ounce in the previous session, gold futures are tumbling $23.70 to $2,688.50 an ounce.

On the currency front, the U.S. dollar is trading at 153.91 yen versus the 154.78 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0518 compared to last Friday’s $1.0418.