S&P 500, Dow touch record highs as markets cheer Trump's Treasury pick
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Peabody Energy falls; will buy Anglo American's coal mines
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Indexes up: Dow 1.03%, S&P 500 0.72%, Nasdaq 0.81%
Updates at market open
By Johann M Cherian and Purvi Agarwal
Nov 25 (Reuters) - The benchmark S&P 500 and the blue-chip Dow hit intraday record highs on Monday while the Nasdaq also advanced, with ScottBessent's nomination as Treasury secretary in the incoming Trump administration boosting investor sentiment.
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.
At 09:50 a.m. the Dow Jones Industrial Average .DJI rose 459.25 points, or 1.03%, to 44,753.77, the S&P 500 .SPX gained 43.12 points, or 0.72%, to 6,012.50 and the Nasdaq Composite .IXIC gained 153.88 points, or 0.81%, to 19,157.53.
The Russell 2000 index .RUT, tracking domestically focused small-caps, rose 1.5%, inching closer to an all-time high as the yield on 30-year Treasury bonds US30YT=RR led declines across the curve.
Yields on Treasury bonds had surged after Trump's victory after expectations that his policies, considered broadly positive for the economy and big corporates, could stoke inflationary pressures and slow the pace of the Federal Reserve's monetary policy easing.
"He (Bessent) might have a moderate approach to tariffs and that's good news, because one of the fears is that if Trump does impose strong tariffs, that could be inflationary and would mean the Fed would have to perhaps reverse the present monetary policy," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York.
Big banks gained, with Goldman Sachs GS.N rising 0.4%, JPMorgan Chase & Co JPM.N up 0.6% andMorgan Stanley MS.N adding 0.6%, sending the broader Banks index .SPXBK 0.9% higher.
Popular 'Trump trade' Tesla TSLA.O advanced 0.8%, while other growth stocks such asAlphabet GOOGL.O and Amazon.com AMZN.O rose 2.1% each.
The Consumer Discretionary .SPLRCD and Communication Services .SPLRCL sectors rose 1.3% and 1%, respectively.
The benchmark S&P 500 .SPX was trading above6,000 points,and has jumped more than 4% since Nov. 4. The Russell 2000 index .RUT has surged more than 8% in thesame period.
Brokerage Barclays raised its full-year 2025 forecast for the S&P 500 to 6,600 points from 6,500.
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.
The Personal Consumption Expenditure report, the central bank's preferred inflation gauge, will be on investors' radar this Thanksgiving week.
Macy's M.N fell 3.5% after the department-store operatordelayed 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 21.5%.
Peabody Energy BTU.N dropped 1.8% after Anglo American AAL.L decided to sell its remaining Australian steelmaking coal mines to the company for up to $3.78 billion in cash.
Retail trading platform Robinhood Markets HOOD.N advanced 4% after Morgan Stanley raised its rating on the stock.
Advancing issues outnumbered decliners by a 4.99-to-1 ratio on the NYSE, and by a 3.5-to-1 ratio on the Nasdaq.
The S&P 500 posted 85 new 52-week highs and no new lows, while the Nasdaq Composite recorded 252 new highs and 26 new lows.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
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