Wall St gains, small caps hit record high after Trump picks Treasury chief
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Indexes up: Dow 0.92%, S&P 500 0.38%, Nasdaq 0.45%
Updates with Russell hitting a record high, quote
By Johann M Cherian and Purvi Agarwal
Nov 25 (Reuters) - Wall Street's main indexes gained on Monday, with the small-cap Russell 2000 index hitting an all-time high as investors cheered ScottBessent's nomination as Treasury secretary and monitored talks of a ceasefire to the Middle East conflict.
President-elect DonaldTrump ended weeks of speculation when he named his choice late on Friday, with some investment strategists saying Bessent could take measures to restrain further government borrowing, even as he follows through on fiscaland trade campaign pledges.
Markets also focused on talks of a ceasefire deal between Israel and Lebanon. Oil prices slid, dragging the energy index .SPNY lower by 1%.
At 10:58 a.m. ET, theDow Jones Industrial Average .DJI rose 405.42 points, or 0.92%, to 44,701.93, the S&P 500 .SPX gained 22.42 points, or 0.38%, to 5,991.76 and the Nasdaq Composite .IXIC gained 82.63 points, or 0.45%, to 19,085.54.
The small-cap index .RUT hit an all-time high of 2,464.90 and was last up 2.4%, eclipsing the high it touched three years ago.
"We're definitely seeing a broadening out of leadership in the market," said Adam Sarhan, chief executive of 50 Park Investments in New York.
"Areas that were lagging for most of this year are beginning to outperform, such as the small cap and the mid cap stocks, not just due to Trump, but also due to the Federal Reserve cutting rates."
Expectations that Trump, along with a Republican Congress, can make good on his promise of lower taxes, import tariff hikes and less rigid regulations have been the latest tailwinds for small-cap companies. Small-caps have been in the spotlight since the U.S. Federal Reserve commenced its monetary policy easing cycle in September.
The benchmark S&P 500 .SPX was trading above 6,000 points, and has jumped more than 4% since Nov. 4. The Russell 2000 index .RUT has surged more than 8% in the same period.
Barclays raised its full-year 2025 forecast forthe S&P 500.
However, concerns remain thatinflationary pressures could spike andslow the pace of the Fed's monetary policy easing.
Investors have recently swung between expectation of a pause versus a further cut in interest rates at the Federal Reserve's December meeting. The CME Group's FedWatch Tool shows a near 56% probability the central bank will deliver another 25 basis point cut.
Big banks gained, with Goldman Sachs GS.N rising 0.44%, JPMorgan Chase & Co JPM.N up 0.40%, while the regional banks index .KRX surged 3.6%.
Consumer discretionary stocks .SPLRCD led sectoral gains, aided by Amazon.com's AMZN.O 1.5% rise.
Later this Thanksgiving week, thepersonal consumption expenditure report, the central bank's preferred inflation gauge, will be on investors' radar.
Macy's M.N fell 2% after the department-store operator delayed the publication of its third-quarter results due to an accounting issue.
Bath & Body Works BBWI.N raised its forecast for full-year adjusted profit, sending the retailer's shares up 17%.
Retail trading platform Robinhood Markets HOOD.N advanced 5.3% after Morgan Stanley raised its rating on the stock.
Advancing issues outnumbered decliners by a 4.36-to-1 ratio on the NYSE and by a 3.46-to-1 ratio on the Nasdaq.
The S&P 500 posted 97 new 52-week highs and no new lows, while the Nasdaq Composite recorded 301 new highs and 37 new lows.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and Maju Samuel
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