US financial markets on Monday welcomed Donald Trump's nomination of financier Scott Bessent as Treasury secretary.
Stocks rose on the first trading day following Trump's nomination announcement on Friday. The Dow Jones Industrial Average rose 475 points, or about 1%. The S&P 500 rose about six-tenths of a percent. The Nasdaq Composite Index also rose about three-quarters of a percent.
The Russell 2000 index of U.S. small businesses rose 1.6%, showing investors' confidence that the Trump administration's policies under Bessent will boost the domestic economy.
Bessent said he would make President Trump's tax cuts a top priority. He is also a proponent of reducing the deficit to 3% of gross domestic product (GDP), primarily by growing the economy faster than government spending. Bessent also said the Trump administration's proposed tariffs would benefit American businesses and workers by opening up global markets to American products and protecting American manufacturers from the predatory mercantilist policies of countries such as China. I believe that it can be used to bring about
U.S. Treasury yields have fallen significantly, perhaps indicating less concern over inflation and budget deficits. Treasury yields move in the opposite direction to prices, so falling yields mean investors are paying more for U.S. Treasuries.
Stock prices rose in Australia and Japan, but fell in China.
