Wall St closes higher, small-caps hit record high after Bessent nomination

From Investing.com: 2024-11-25 16:06:36

Wall Street’s main indexes closed higher, with the small-cap index reaching a record high after Scott Bessent was nominated as U.S. Treasury secretary. Talks of a ceasefire between Israel and Lebanon pushed oil prices lower. Bessent’s nomination eased fiscal concerns, leading to lower bond yields. The S&P 500 gained 0.30%, Nasdaq rose 0.27%, and Dow Jones increased by 0.99%.

The small-cap index hit an all-time high as Treasury yields fell sharply. Small-cap and mid-cap stocks have outperformed due to Trump’s policies and the Federal Reserve cutting rates. Expectations of business-friendly policies have boosted small-cap companies. Lower yields boosted the rate-sensitive sector and the Housing index surged.

Barclays raised its full-year forecast for the S&P 500, while Deutsche Bank set a target of 7,000 points by the end of 2025. Concerns remain about potential inflationary pressures slowing the Fed’s policy easing. Investors are uncertain about a pause or further rate cut at the Fed’s December meeting, with a 56.2% probability of a 25 basis-point cut.

Consumer Discretionary stocks led sectoral gains, supported by Amazon.com’s rise. The Personal Expenditure report, a key inflation gauge, will be watched closely this week. Macy’s shares fell after delaying its third-quarter results due to an accounting issue. Bath & Body Works raised its adjusted profit forecast, leading to a sharp rise in shares.



Read more at Investing.com: Wall St closes higher; small-caps hit record high after Trump nominates Bessent By Reuters