Market Rally: Bessent's Nomination Boosts Wall Street

Wall Street's major indexes rose as the Russell 2000 hit a record, buoyed by investor excitement over Scott Bessent's Treasury nomination and a potential Middle East ceasefire. Peabody Energy shares declined after a coal mine purchase, while Robinhood gained on an upgrade. Macy's fell due to delayed earnings reports.

Wall Street's main indexes surged on Monday, reaching new heights as the small-cap Russell 2000 marked an all-time high, driven by investor optimism. The rally was spurred by President-elect Donald Trump's nomination of Scott Bessent as Treasury Secretary, aimed at controlling government borrowing while upholding fiscal promises.

Investor focus also shifted toward possible ceasefire negotiations between Israel and Lebanon. Energy prices dropped, impacting related stocks. As of late morning trading, multiple indexes, including the Dow, S&P 500, and Nasdaq, displayed notable gains.

Small-cap stocks, previously underperforming, rebounded with renewed strength. Economic policies, expected tax cuts, and reduced regulations under a Republican Congress were key drivers. Despite these bullish trends, concerns loomed over inflation, potentially affecting Federal Reserve rate decisions.

(With inputs from agencies.)