Donald Trump has chosen Scott Bessent, a hedge fund veteran, as Treasury secretary. This decision suggests a more moderate approach to economic policy, with a focus on the deficit and the potential impact of tariffs.
Trump's proposed 60% tariffs on imports from China may specifically target Chinese steel dumping, which has been routed through Mexico. This move could benefit U.S. steel producers like Nucor, although it may take time to see significant improvements in their upcoming quarterly results.
The nomination of Bessent and a decline in bond yields have boosted Wall Street, which is expected to open higher. Despite a shortened trading week, there are important events on the horizon, including the Federal Reserve's preferred inflation reading on Wednesday. Recent market fluctuations have created opportunities for long-term investment strategies, which has encouraged investors.