US stocks enjoyed a robust rally on Monday, buoyed by optimistic investor sentiment surrounding the electoral prospects of presidential candidate Donald Trump, following an unsuccessful assassination attempt. The Dow Jones Industrial Average closed up approximately 0.4%, marking a new all-time high above the 40,000 mark. The S&P 500 and Nasdaq Composite also posted gains of about 0.3% and 0.4%, respectively, approaching record levels.
Investor confidence was bolstered further by strong second-quarter earnings reports from major US banks. Goldman Sachs reported a notable 150% increase in profits, driven by robust performance in investment banking, signaling a recovery on Wall Street after a prolonged downturn. Shares of Goldman Sachs rose approximately 2.5%. Additionally, BlackRock exceeded profit expectations with assets under management reaching a record $10.6 trillion.
Amid these earnings reports, market attention also turned to the implications of the assassination attempt on Trump during a rally on Saturday. This event heightened expectations of a potential victory for Trump in the upcoming presidential election. Investors anticipate policies such as tax cuts, increased trade tariffs, and regulatory easing under a Republican administration.
In the bond market, the benchmark 10-year Treasury yield rose by 4 basis points to around 4.2%, while the 30-year yield saw an increase, steepening the yield curve. The US dollar edged higher, and bitcoin surged to a two-week high amid speculation surrounding a potential Trump win.
Meanwhile, Trump-related stocks, such as Trump Media & Technology, soared more than 30% by the end of the trading day, while cryptocurrencies also experienced gains.
Federal Reserve Chair Jerome Powell’s remarks at a Washington, D.C., event were closely monitored by investors. Powell reiterated that recent inflation data indicates progress in combating inflationary pressures, reinforcing market expectations of potential rate cuts as early as September.
The day’s trading reflected a complex interplay of political developments, corporate earnings, and economic indicators, underscoring the dynamic nature of today’s financial markets.
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