The Dow Jones Industrial Average (DJI) has surged to a record high after Donald Trump's announcement of Scott Bessent, a former hedge fund manager, as his pick for US Treasury Secretary.¹ This move has instilled optimism in the market, with investors hoping that Bessent's Wall Street background will bring economic and market stability.
The S&P 500 Index has also posted a new all-time high, while the Nasdaq 100 Index has climbed to a 1-week high. However, not all sectors are performing well, with energy stocks experiencing weakness due to a decline in WTI crude prices.
Bessent's appointment is seen as a positive development, as he is expected to prioritize economic and market stability, as well as lower deficits. This news has overshadowed some disappointing economic data, including a decline in the Chicago Fed national activity index and a weaker-than-expected Dallas Fed manufacturing outlook survey.
