Stocks Join Bonds Higher on Trump’s Treasury Pick: Markets Wrap

(Bloomberg) -- Stocks climbed with bonds and the dollar fell as traders welcomed Donald Trump’s pick of Scott Bessent for Treasury Secretary, betting the hedge fund manager will bring a Wall Street mindset to the role.

The S&P 500 hovered near 6,000. Small caps with typically domestic operations headed toward all-time highs. Most tech giants advanced, though Nvidia Corp. sold off. Treasuries rallied across the US curve, with the move led by longer maturities. The greenback dropped against the majority of developed-world currencies. Bitcoin slipped after a rally toward $100,000 fizzled just shy of the historic level. Oil sank as Israel moved closer to a cease-fire with Hezbollah.

Bessent, who runs macro hedge fund Key Square Group, has called for a gradual approach to implementing trade restrictions, and has appeared open to negotiating the exact size of tariffs championed by the president elect.

“Investors are viewing this nomination as one that will provide a Goldilocks scenario for Mr. Trump’s pro-business proposals,” said Matt Maley at Miller Tabak + Co.

In corporate news, Macy’s Inc. sank after saying it would delay its third-quarter earnings release after an investigation revealed an employee hid more than $100 million of expenses. Bath & Body Works Inc. jumped on a bullish earnings forecast. MicroStrategy Inc. bought a record $5.4 billion in Bitcoin.

Key events this week:

• Fed minutes, US new home sales, consumer confidence, Tuesday
• US PCE, initial jobless claims, GDP, durable goods, Wednesday
• Eurozone economic confidence, consumer confidence, Thursday
• US Thanksgiving holiday. Markets closed, Thursday
• Eurozone CPI, Friday
• ECB releases consumer expectations survey for October, Friday
• “Black Friday,” the traditional start of the US holiday shopping rush

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 1:29 p.m. New York time
• The Nasdaq 100 was little changed
• The Dow Jones Industrial Average rose 0.8%
• The MSCI World Index rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.5%
• The euro rose 0.7% to $1.0496
• The British pound rose 0.3% to $1.2563
• The Japanese yen rose 0.4% to 154.19 per dollar

Cryptocurrencies

• Bitcoin fell 1.6% to $95,450.01
• Ether rose 3.4% to $3,461.63

Bonds

• The yield on 10-year Treasuries declined 13 basis points to 4.28%
• Germany’s 10-year yield declined three basis points to 2.21%
• Britain’s 10-year yield declined four basis points to 4.34%

Commodities

• West Texas Intermediate crude fell 3.3% to $68.89 a barrel
• Spot gold fell 3.6% to $2,618.04 an ounce

This story was produced with the assistance of Bloomberg Automation.

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