Stocks on Wall Street got the Bessent blessing, climbing to new all-time highs. Small caps hit a record all time high.

Several reasons. Firstly, they hit higher levels as oil fell 3% with signs of an Israel-Hezbollah ceasefire, while the US dollar saw its biggest fall in two weeks. Markets really like that Trump tapped Scott Bessent to be Treasury Secretary, one of the most influential roles in US government. Traders are believe Bessent will soften Trump’s aggressive trade plans. That’s why investors are selling out of safe havens such as the US dollar and gold, they are buying into higher-risk assets tied to economic growth. So financials, banks, and industrials were the best-performing sectors overnight, with banking stocks hit new record all time highs. And with US bond yields falling  - Equities look even more set for a bull run until year's end, as investors like Bessent's plan to cut the US budget by 3%, boosting GDP to 3%, and encouraging big oil producers to produce an additional 3 million barrels. All that supports the sharemarket and broad buying.

But we saw the Dow Jones hit a technically overbought level as the Russell 2000 index did too. This suggest markets might step lower, but expect dips to be bought and for markets to head higher for the end of the year. Goldman Sachs saying markets could rally up 4% for the rest of the year. But then think about Deutsche Bank’s 7000 target for the next year. That implies a 17% gain from where we are. Regardless of how much markets go up by, this is your wake-up call to be invested.