FILE – People work on the New York Stock Exchange trading floor in New York on November 21, 2024. (AP Photo/Ted Shaffrey, File)
New York, United States — US stocks rose Monday, with the Dow finishing at a fresh record as markets greeted Donald Trump’s pick for treasury secretary, while oil prices retreated on hopes for a ceasefire between Israel and Hezbollah.
The Dow climbed one percent to a second straight all-time closing high on news of the selection of hedge fund manager Scott Bessent to lead the critical economic policy position.
A widely respected figure on Wall Street, Bessent is seen as being in favor of growth and deficit reduction policies and not known overly fond of trade tariffs.
The market “breathed a sigh of relief” at Bessent’s selection, said Art Hogan from B. Riley Wealth Management.
But after an initial surge Monday, the gains in US equities moderated somewhat.
While investors are enthusiastic about the possibility of tax cuts and regulatory relief under Trump, “we do have to face the potential for tariffs being a negative as well as a very tight market around immigration, which is not positive for the economy,” Hogan said.
Earlier, equity gains were limited in Europe as growth concerns returned to the fore with Germany’s Thyssenkrupp announcing plans to cut or outsource 11,000 jobs in its languishing steel division.
Currently around 27,000 people are employed in the steel division, which has been battered by high production costs and fierce competition from Asian rivals.
Elsewhere, crude oil prices fell decisively as Israel’s security cabinet prepared to decide whether to accept a ceasefire in its war with Hezbollah, an official said Monday.
The United States, the European Union and the United Nations have all pushed in recent days for a truce in the long-running hostilities between Israel and Hezbollah, which flared into all-out war in late September.
Speaking on condition of anonymity, an Israeli official told AFP the security cabinet “will decide on Tuesday evening on the ceasefire deal.”
And bitcoin’s push toward $100,000 ran out of steam after coming within a whisker of the mark last week, on hopes that Trump would enact policies to bring the cryptocurrency more into the mainstream.
Bitcoin was recently trading under $96,000, having set a record high of $99,728.34 Friday — the digital currency has soared about 50 percent in value since Trump’s election.
This week’s data includes a reading of consumer confidence and an update of personal consumption prices, a key inflation indicator.
Those reporting earnings include Best Buy, Dell and Dick’s Sporting Goods.
Key figures around 2140 GMT
New York – Dow: UP 1.0 percent at 44,736.57 (close)
New York – S&P 500: UP 0.3 percent at 5,987.37 (close)
New York – Nasdaq: UP 0.3 percent at 19,054.84 (close)
London – FTSE 100: UP 0.4 percent at 8,291.68 (close)
Paris – CAC 40: FLAT at 7,257.47 (close)
Frankfurt – DAX: UP 0.4 percent at 19,405.20 (close)
Tokyo – Nikkei 225: UP 1.3 percent at 38,780.14 (close)
Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,150.99 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,263.76 (close)
Euro/dollar: UP at $1.0495 from $1.0418 on Friday
Pound/dollar: UP at $1.2564 from $1.2530
Dollar/yen: DOWN at 154.23 yen from 154.78 yen
Euro/pound: UP at 83.51 pence from 83.14 pence
West Texas Intermediate: DOWN 3.2 percent at $68.94 per barrel
Brent North Sea Crude: DOWN 2.9 percent at $73.01 per barrel