The Dow and S&P 500 hit new highs as Trump picks Scott Bessent as Treasury Secretary
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The Dow and S&P 500 reached all-time highs, while the dollar weakened on Monday following the news that President-elect Donald Trump has tapped Wall Street’s Scott Bessent to be his next Treasury Secretary.
By the end of the day, the Dow closed at a new record, rising 440 points, or 0.99%, to 44,736. The S&P 500 inched up 0.3% and the Nasdaq rose 0.2%. The Russell 2000, a benchmark for small companies, also reached a new record high on Monday, rising nearly 2%. Meanwhile, one measure of the U.S. dollar dropped as much as 0.6%.
Bessent, founder of Key Square Capital Management and a former Soros Fund Management executive, was a popular choice for the influential role among Trump’s advisers. The 62-year-old executive has expressed support for a number of key proposals around taxes and tariffs, but is expected to bring a more measured approach to economic policies.
In an interview with Fox Business (FOXA-1.73%) early this month, Bessent said that the priority of the incoming Trump administration should be to extend or make permanent the Tax Cuts and Jobs Act, which would benefit corporations. The Trump-era legislation, which slashed the corporate tax rate from 35% to 21%, is set to expire in 2025.
Bessent has also shown he is aligned with with the president-elect on a number of economic policies, including his stance on cryptocurrency.
“I have been excited about the president’s embrace of crypto and I think it fits very well with the Republican Party,” Bessent said in June. “Crypto is about freedom and the crypto economy is here to stay.”
In an op-ed in The Wall Street Journal (NWSA-0.14%) following the election, Bessent touted markets’ positive response to Trump’s win.
“Asset prices are fickle, and long-term economic performance is the ultimate measuring stick,” Bessent wrote. “But recent days prove markets’ unambiguous embrace of the Trump 2.0 economic vision. Markets are signaling expectations of higher growth, lower volatility and inflation, and a revitalized economy for all Americans.”
Super Micro Computer Stock surges 12%
Shares of Super Micro Computer (SMCI+15.87%) soared, up over 12%, as the server manufacturer continues its upward momentum following the submission of a compliance plan last week aimed at avoiding delisting from the Nasdaq. In addition to that, the company received a notable mention from its partner and artificial intelligence powerhouse, Nvidia (NVDA-4.27%), during the chipmaker’s earnings call last Wednesday, which strengthened investor’s confidence in Super Micro Computer.
Bitcoin nears a $100,000 milestone
Bitcoin is on the verge of hitting the $100,000 level. The cryptocurrency market saw a burst of activity early Friday as the leading cryptocurrency surged past the $99,486 mark before retracing its gains. The rally was fueled by growing optimism over potential regulatory easing following reports that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is expected to step down soon. Moreover, this remarkable ascent follows the debut of Bitcoin ETFs (exchange-traded funds) options last week—a landmark event in the cryptocurrency industry.
