Investors like Trump’s pick for Treasury secretary

Scott Bessent, founder and CEO of Key Square Group LP, was interviewed in Washington, DC, the United States, on Friday, June 7, 2024.

Stephanie Reynolds | Bloomberg | Getty Images

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

market rebound
US stocks appeared Gains were broad on Monday, with major stock indexes hitting record highs. Pan-European Stoke 600 Closed near the horizontal line. UniCredit BankAn Italian bank offers to acquire domestic rival BPM Bank About 10 billion euros ($10.5 billion). UniCredit has also been eyeing Commerzbank.

Wall Street loves Bessant
President-elect Donald Trump’s pick for U.S. Treasury Secretary Scott Bessent has received strong approval from the stock and bond markets. Wall Street strategists are full of praise for Bessent; global analysts also believe that Trump’s choice is beneficial to the market.

Intel close to deal
The U.S. Office of Chip and Science Act is close to reaching an agreement with Intel, which will provide the chipmaker with funding worth about $8.5 billion, according to people familiar with the matter. The Ministry of Defense is also preparing to award Intel A $3 billion chip manufacturing contract. These are some highlights from a tough year for Intel.

Bitcoin struggles to break through barriers
After hovering near the $100,000 mark, Bitcoin It lost some momentum and has dropped to $94,228.47, according to Coin Metrics. Andre Dragosch, Bitwise’s head of European research, said investors may take profits. Mark Novogratz, CEO of digital asset management company Galaxy Digital, told CNBC that “there is still a lot of leverage in the system.”

(PRO) How to Invest $500,000 in 2025
In 2025, Trump will enter the White House and policies are expected to shake up the economy; the Federal Reserve will continue to adjust interest rates; and NVIDIA will provide its next-generation Blackwell chips. CNBC Pro spoke with wealth managers to find out how investors should invest $500,000 in the tough year ahead.

bottom line

Trump’s rallies appear to be reaching a climax.

This time, Trump’s nominee for Treasury Secretary, Scott Bessent, has added fuel to the momentum. Investors like Bessant because, as the founder of hedge fund Key Square Group, he brings knowledge of Wall Street to the job and can backstop markets.

In addition, Bessant said he would prioritize controlling inflation even among policies aimed at supporting domestic growth. “I propose gradually tiering tariffs,” Bessant said. he told CNBC earlier this month ahead of his nomination.

Unlike previous Trump rallies in which specific assets tied to Trump’s policies – bank stocks, small caps and Bitcoin – have seen disproportionate gains, yesterday’s market gains were substantial.

this S&P 500 Index rose 0.3%, with more than three of the index’s four stocks gaining. this Dow Jones Industrial Average Up 0.99%, continuing record high Nasdaq Index Add 0.27%.

Bessant’s nomination isn’t just a boost for large-cap stocks. Small-cap stocks performed even better, likely because Bessant expressed support for Trump’s economic agenda, which would benefit smaller, domestically-oriented companies. this Russell 2000 The small and mid-cap index rose 1.47%, rising for the sixth consecutive day. It closed at a new high, surpassing the record set in 2021.

The bond market also reacted positively to the news. The 10-year Treasury yield fell more than 14 basis points.

“You couldn’t ask for a better reaction from the market,” said Quincy Krosby, chief global strategist at LPL Financial. “This is the market applauding.”