Wall Street's major indexes closed higher on Monday, with the small-cap Russell 2000 index reaching an all-time high following the nomination of Scott Bessent as the new US Treasury Secretary. The announcement eased concerns over fiscal policy and pushed bond yields lower, providing a boost to equities.

The S&P 500 gained 0.30% to close at 5,987.15, while the Nasdaq Composite rose 0.27% to 19,055.15. The Dow Jones Industrial Average led gains with a 0.99% increase, finishing at 44,735.53. Meanwhile, the Russell 2000 index hit a record intraday high of 2,466.49, driven by falling Treasury yields and investor optimism over small-cap and mid-cap stocks.

President-elect Donald Trump's nomination of Bessent is viewed by analysts as a stabilising factor for fiscal policy. "The selection of Bessent has tempered fiscal concerns, particularly around tariff policies," noted James Reilly, senior market economist at Capital Economics.

Lower bond yields spurred gains in rate-sensitive sectors. The Real Estate sector advanced, while the Housing index surged 4.5%. Consumer Discretionary stocks also performed well, supported by a 2.2% rise in Amazon.com shares.

Barclays raised its full-year 2025 forecast for the S&P 500, while Deutsche Bank projected the index could hit 7,000 by the end of 2025. However, concerns remain over potential inflationary pressures, which could influence the Federal Reserve's monetary policy decisions at its December meeting.

On the corporate front, Macy's shares fell 2.2% after delaying its third-quarter report due to an accounting issue. In contrast, Bath & Body Works saw its shares surge 16.5% after raising its full-year profit forecast.

Trading volume on US exchanges was robust, with 16.69 billion shares traded, surpassing the 20-day average of 14.93 billion. Advancing stocks outnumbered decliners by a ratio of 3.01-to-1 on the New York Stock Exchange, underscoring the positive market sentiment.

Reuters