Wall Street Rallies Amid Treasury Nomination and Ceasefire Talks

Wall Street's main indexes closed higher, spurred by Scott Bessent's U.S. Treasury secretary nomination and potential ceasefire talks between Israel and Lebanon. The Russell 2000 hit a record high as bond yields dropped. Trump's business-friendly policies and monetary easing also provided tailwinds for markets.

Wall Street's main indexes surged on Monday, driven by the nomination of Scott Bessent for U.S. Treasury secretary, which contributed to lowered bond yields, and talks of a potential ceasefire between Israel and Lebanon, which reduced oil prices and weighed down the Energy index.

The announcement by President-elect Donald Trump of Bessent as his Treasury secretary choice alleviated some fiscal concerns and positioned markets for restrained government borrowing, heightening expectations for business-friendly policies under the new administration.

The small-cap Russell 2000 index reached unprecedented heights, fueled by easing fiscal concerns and Federal Reserve rate cuts. Investor focus shifted to sectoral movements, with a significant rise in Consumer Discretionary stocks, while traders closely watched interest rate probabilities ahead of the Fed's upcoming meeting.

(With inputs from agencies.)