Markets Calm Down with Trump's Treasury Pick

Investors seem to be feeling more at ease with Donald Trump's choice for Treasury secretary. At 5:42 a. m. ET, the 10-year Treasury yield dropped by over 6 basis points to 4. 347%, while the 2-year yield fell by more than 2 basis points to 4. 348%. This change came as investors considered Trump's selection of hedge fund executive Scott Bessent for the Treasury role and awaited an important inflation report due later in the week. Bessent, who founded Key Square Group, is expected to support Trump's economic plans, which include gradual tariffs and business-friendly policies. However, as a seasoned Wall Street professional and fiscal conservative, investors believe Bessent will prioritize stability in the U. S. economy and markets. "Scott Bessent's nomination as U. S. Treasury Secretary has led to lower bond yields, higher stock market indices, and a weaker dollar this morning, " noted Kit Juckes, chief FX strategist at Societe Generale, in a Monday note. "His appointment was positively received by markets concerned about the U. S. budget deficit and the inflationary impact of tariffs. Whether he can achieve 3% GDP growth and a 3% budget deficit remains to be seen, but for now, he has certainly shifted market sentiment. "

This week, investors will also be paying attention to several key data releases. Markets will close early on Thursday for Thanksgiving and on Friday. On Tuesday, the Federal Reserve's recent policy meeting minutes and the S&P CoreLogic Case-Shiller national home price index for September are expected to be published. Wednesday will bring a series of economic updates, with a particular focus on the October personal spending and income release. This release includes the personal consumption and expenditure (PCE) price index, the Federal Reserve's preferred measure of inflation. Economists anticipate a 2. 8% year-over-year increase at the core level (excluding food and energy prices) and a 2. 3% year-over-year increase at the headline level, according to Dow Jones estimates. As the last PCE release before the Fed's December meeting, investors will be looking for clues about the central bank's next policy move.

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