The market reacted positively to President-elect Donald Trump's selection of Scott Bessent as Treasury Secretary, with U.S. equity index futures surging. Bessent, a hedge fund manager known for his measured and stable approach, has been well-received by investors.
The announcement of Bessent's appointment came after a strong performance in the markets. The Dow Jones Industrial Average reached a record close above 44,000, while the S&P 500 and Nasdaq also saw modest gains.
Economic indicators released last Friday, including the services Purchasing Managers' Index (PMI) for the U.S., further bolstered market optimism. These indicators provide insights into the broader economic environment and potential implications for monetary policy.
From a technical perspective, the Dow's performance has been bullish, with current strategies favoring buying over selling. Investor sentiment has shifted, with IG client sentiment moving to an extreme short position. The Commitment of Traders (CoT) report indicates a pullback from heavy buying territory.
As the holiday week approaches, traders and investors will continue to monitor developments that could influence market dynamics. Factors such as the Federal Reserve's upcoming December meeting and consumer sentiment, such as the University of Michigan's revised figures, will be closely watched.
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