U.S. stock index futures climbed in evening trading on Sunday, with Wall Street responding positively to President-elect Donald Trump’s decision to nominate Scott Bessent as Treasury Secretary.
The announcement brought relief to investors, sparking gains in cyclical and economically sensitive stocks. Markets appeared to be positioning for potential expansionary policies under the new administration. However, technology stocks lagged behind, with leading chipmakers experiencing losses, which capped broader market gains.
Investor sentiment also received a boost from reports suggesting progress toward a ceasefire agreement between Israel and Hezbollah in Lebanon, raising hopes of easing tensions in the Middle East.
The week ahead holds significant economic data releases that could influence interest rate expectations.
By 18:22 ET (23:22 GMT), S&P 500 Futures had risen 0.4% to 6,008.0 points, Nasdaq 100 Futures gained 0.4% to 20,937.0 points, and Dow Jones Futures climbed 0.5% to 44,618.0 points.
Relief as Bessent Takes Key Treasury Role
Bessent’s nomination alleviated a critical point of market uncertainty. As Treasury Secretary, his role will be pivotal in shaping economic and trade policy under Trump’s administration.
A seasoned investor, Bessent has been a vocal advocate for tax reform and deregulation, easing fears of aggressive trade tariffs that could escalate tensions into a trade war.
Following the announcement, the U.S. dollar dipped 0.6%, and Treasury yields fell sharply, with the 10-year yield dropping 1.4%.
Trump’s other cabinet appointments included Pete Hegseth as Defense Secretary, Howard Lutnick as Commerce Secretary, and Mike Waltz as National Security Adviser, indicating a mix of business-oriented and hawkish strategies.
Wall Street Focuses on Key Inflation Data
The rise in futures followed a strong session on Wall Street on Friday, driven by rotation into cyclical stocks. The Dow Jones Industrial Average led the gains, rising nearly 1% to close at 44,296.51 points. The S&P 500 added 0.4% to reach 5,969.30 points, while the NASDAQ Composite lagged behind with a 0.2% increase to 19,003.65 points.
Investors are optimistic about Trump’s promises of tax cuts and policies favoring domestic economic growth. Technology stocks underperformed, further impacted by a tepid earnings outlook from NVIDIA Corporation (NASDAQ: NVDA) last week.
This week’s highlight will be the PCE price index, the Federal Reserve’s preferred inflation measure. The data is expected to provide further clarity on the central bank’s stance regarding interest rate cuts in December.
