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 rose for a sixth straight day, hovering 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.

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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.

The S&P 500 rose 0.3%. The Nasdaq 100 added 0.2%. The Dow Jones Industrial Average climbed 0.7%. The Russell 2000 gained 1.9%. Treasury 10-year yields slid 10 basis points to 4.30%. 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.

Corporate Highlights:

• Macy’s Inc. said it would delay its third-quarter earnings release after an investigation revealed an employee hid more than $100 million of expenses.
• MicroStrategy Inc. bought a record $5.4 billion in Bitcoin, the third major purchase announced this month by the crypto hedge fund proxy.
• Bath & Body Works Inc. boosted its earnings per share forecast for the full year.
• US Bancorp was upgraded to buy at Citigroup Inc., which said the firm has “turned the corner” on investment spend, with shares trading at a “fairly large” discount.
• Rocket Lab USA Inc. said it successfully launched its 56th Electron missile.
• Cassava Sciences Inc. said its Alzheimer’s treatment Simufilam did not show a significant reduction in cognitive or functional decline versus placebo in patients with mild-to-moderate levels of the disease in the ReThink-ALZ Phase 3 study.
• Thyssenkrupp AG’s steel unit plans to eliminate or outsource 11,000 jobs this decade.

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
• Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday
• 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 0.3% as of 12 p.m. New York time
• The Nasdaq 100 rose 0.2%
• The Dow Jones Industrial Average rose 0.7%
• The Stoxx Europe 600 was little changed
• The MSCI World Index rose 0.4%
• Bloomberg Magnificent 7 Total Return Index rose 0.3%
• The Russell 2000 Index rose 1.9%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%
• The euro rose 0.5% to $1.0470
• The British pound rose 0.1% to $1.2543
• The Japanese yen rose 0.2% to 154.40 per dollar

Cryptocurrencies

• Bitcoin fell 1.3% to $95,778.48
• Ether rose 3.8% to $3,474.07

Bonds

• The yield on 10-year Treasuries declined 10 basis points to 4.30%
• Germany’s 10-year yield declined three basis points to 2.21%
• Britain’s 10-year yield declined four basis points to 4.35%

Commodities

• West Texas Intermediate crude fell 2.8% to $69.25 a barrel
• Spot gold fell 3.1% to $2,631.40 an ounce

This story was produced with the assistance of Bloomberg Automation.

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