Market Surge as Investors Welcome New U.S. Treasury Secretary Pick

The global equities gauge rose and U.S. government bonds rallied as investors welcomed Scott Bessent as the new U.S. Treasury secretary. Wall Street indices hit records due to hopes of tax cuts and fiscal caution. Oil and gold prices fell, while the dollar weakened.

In a surge of investor confidence, MSCI's global equities gauge climbed alongside a rally in U.S. government bonds, as the dollar declined on Monday. The welcome news came as Scott Bessent, a seasoned fund manager, was announced as President Trump's choice for U.S. Treasury secretary.

Wall Street responded positively to the nomination, with the S&P 500 and the Dow Jones both achieving intraday records. Investors are optimistic about the prospects of tax cuts and fiscal prudence under Bessent's leadership, as articulated in interviews with major financial publications.

Meanwhile, oil and gold markets experienced a slump amid geopolitical developments and the new treasury leadership announcement. The dollar weakened against major currencies, signaling a shift in market dynamics as traders adjust to the incoming fiscal policies.

(With inputs from agencies.)