Russell 2000, Dow, S&P 500 All Achieve Record Highs In Wall Street’s Historic Day; Bitcoin, Gold Tumble: What’s Driving Markets Monday?

A mix of easing global geopolitical tensions, post-election bullish momentum and favorable seasonal trends propelled major U.S. stock indices to new record heights during Monday morning trading, marking what could be another historic session on Wall Street.

The S&P 500 and Dow Jones Industrial Average surged to all-time records, hitting intraday highs of 6,020 and 44,815 points, respectively, before paring back some gains.

Yet, the small-cap Russell 2000 index stole the spotlight, up 1.4% and reaching an all-time high for the first time since November 2021.

Investors cheered President-elect Donald Trump‘s nomination of hedge fund manager Scott Bessent for Treasury Secretary, betting his Wall Street experience could steer fiscal policies toward a pro-market direction.

Meanwhile, the barometer of geopolitical fears eased as Israel and Lebanon agreed to a framework for ending the Israel-Hezbollah conflict. While the deal still requires approval from Israel’s Security Cabinet, traders embraced the news, which sent ripples through commodity markets.

West Texas Intermediate (WTI) crude tumbled 2.7%, falling below $70 per barrel, erasing Friday’s gains. Gold plummeted over 3%, marking one of its worst sessions in 2024, as safe-haven demand receded.

Bucking the trend, natural gas prices soared 8%, driven by reports that Trump’s team is preparing to end Biden’s freeze on liquefied natural gas (LNG) exports.

U.S. Treasury yields plunged as optimism around Bessent’s nomination suggested a potential curb on unchecked deficit spending. The yield on the 10-year Treasury note fell more than 10 basis points to 4.29%, dragging the U.S. dollar down 0.6%.

While traditional equities rallied, the risk-on sentiment did not extend to cryptocurrencies. Bitcoin BTC/USD dropped 3% to around $95,000, further distancing itself from the highly anticipated $100,000 milestone.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY edged 0.1% higher to $596.04, eyeing the sixth straight session of gains.
• The SPDR Dow Jones Industrial Average DIA rose 0.6% to $445.93.
• The tech-heavy Invesco QQQ Trust Series QQQ inched 0.065% up to $506.12.
• The iShares Russell 2000 ETF IWM rallied 1.5% to $242.71.
• The Consumer Discretionary Sector Select Sector SPDR Fund XLY outperformed, rising 1.2%. The Energy Select Sector SPDR Fund XLE lagged, down 1.6%.

• Bath & Body Works Inc. BBWI rallied 14.5% in reaction to better-than-expected quarterly earnings.
• Macy’s Inc. M fell over 3% after the company announced that a former employee allegedly concealed between $132 million and $154 million in delivery expenses from the fiscal fourth quarter of 2021 through the most recent quarter ending Nov. 2. As a result, it has postponed its earnings release and conference call to as late as Dec. 11 to allow time for an independent audit.
• Rivian Automotive Inc. RIVN soared 13%, after Volkswagen announced to boost its initial investment by an additional $800 million to $5.8 billion.

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