Advertisement
Advertisement
Dow Jones: Futures Surge Over 300 Points as Bessent Treasury Pick Fuels Optimism
By:
Key Points:
- Dow Jones futures rise over 300 points as optimism grows around Scott Bessent's Treasury nomination by President-elect Trump.
- U.S. stock futures surge, with Dow up 0.7%, S&P 500 and Nasdaq gaining 0.5%, extending last week’s strong market rally.
- Markets cheer Bessent’s macro expertise; analysts expect measured tariff policies, tax cuts, and deregulation to boost U.S. growth.
- Bath & Body Works stock jumps 11% after a solid earnings beat, signaling resilience in consumer-focused retail despite tough markets.
- Macy’s shares fall 3% due to an accounting error revelation, with net sales down 2.4% year-over-year in preliminary Q3 results.
In this article:
What’s Driving the Market Today?
U.S. stock futures rallied on Monday, with the Dow Jones Industrial Average futures gaining over 300 points. Optimism surged following President-elect Donald Trump’s nomination of hedge fund veteran Scott Bessent for Treasury Secretary. Wall Street started the shortened Thanksgiving trading week buoyed by last week’s strong gains, including a record close for the Dow.
How Are Major U.S. Stock Futures Performing?
U.S. stock futures pointed higher Monday ahead of the cash market open, with Dow Jones Industrial Average futures rising 355 points, or 0.8%. Futures tied to the S&P 500 and Nasdaq-100 gained 0.64% and 0.72, respectively.
This strength follows last week’s notable rally in cash markets, where the Dow gained 2% to close at a record high, the S&P 500 and Nasdaq each added 1.7%, and the Russell 2000 surged 4.5%. The performance reflects heightened investor confidence as postelection optimism and favorable policy expectations continue to support sentiment.
Why Did the Bessent Nomination Excite Markets?
Markets reacted positively to Trump’s selection of Scott Bessent for Treasury Secretary. Analysts view Bessent’s macroeconomic expertise as a stabilizing force, particularly in addressing concerns over potential tariff policies. In previous remarks, Bessent advocated for a gradual approach to tariffs, aiming to mitigate inflation risks. Treasury yields and the U.S. dollar index both declined following the announcement, reflecting eased market tensions.
Ed Mills, an analyst at Raymond James, noted that Bessent’s experience aligns well with market expectations. Strategies such as measured tariff adjustments, tax cuts, and pro-deregulation policies could support U.S. GDP growth, benefiting equity markets.
Which Stocks Are Making Headlines?
Bath & Body Works surged over 11% in premarket trading after third-quarter earnings of $0.49 per share exceeded LSEG estimates. Revenue of $1.61 billion also beat expectations, providing relief for investors after a tough year where shares have fallen nearly 29%.
Meanwhile, Macy’s stock fell 3% following the disclosure of an accounting issue involving misreported delivery expenses, amounting to $132–$154 million. Preliminary results showed net sales declined 2.4% year-over-year, adding to concerns about the retailer’s outlook.
MicroStrategy shares rose 7% premarket after Bernstein raised its price target, citing favorable conditions for Bitcoin, the company’s primary asset. Analysts pointed to increasing institutional adoption, low interest rates, and supportive regulation as key factors in Bitcoin’s structural bull market, benefiting MicroStrategy’s valuation.
Market Forecast: Where Could the Market Be Headed Next?
A bullish sentiment prevails as investors respond to favorable earnings and policy signals. However, attention will turn to inflation data, with the Federal Reserve’s preferred metric, the October PCE price index, due Wednesday. Fed meeting minutes released the same day may further shape rate expectations. While trading volumes may lighten due to the holiday, markets are expected to maintain an upward bias barring surprises in inflation readings or policy commentary.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
James Hyerczykauthor
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
Latest news and analysis
Advertisement