The Dow Jones Industrial Average reached a new all-time high on Monday, fueled by growing optimism for a September rate cut. Federal Reserve Chairman Jerome Powell’s comments on recent inflation progress further bolstered investor sentiment.
At 15:07 ET (19:07 GMT), the Dow rose 281 points, or 0.7%, setting a record high of 40,351. The S&P 500 climbed 0.4% to a new record, and the NASDAQ Composite gained 0.5%.
Powell Highlights Inflation Progress
Federal Reserve Chairman Jerome Powell stated on Monday that recent inflation data has increased the Fed’s confidence in managing inflation, suggesting that rate cuts could be on the horizon.
“The Fed doesn’t expect to wait until inflation hits the 2% target before cutting rates,” Powell said at the Economic Club of Washington D.C. “Recent data has boosted our confidence that we’re making progress in the fight against inflation.”
Trump Survives Assassination Attempt, Boosts Election Odds
Former President and leading Republican presidential candidate Donald Trump survived an assassination attempt during a campaign rally in Butler, Pennsylvania, on Saturday. The attack, which grazed his ear, has seemingly improved his odds for the 2024 presidential election.
Following the incident, Trump’s chances of winning the 2024 election increased, potentially leading to more hawkish trade policies and looser regulations on issues like climate change and cryptocurrency. Trump is set to speak at the 2024 Republican convention in Milwaukee, where he is expected to be officially nominated as the party’s frontrunner.
In reaction to the news, shares of Trump Media & Technology Group Corp (NASDAQ) surged 33%. “Early analysis suggests the odds of a Trump victory have improved, with some analysts increasing bets on the GOP regaining control of the House,” Stifel said in a Monday note.
Goldman Sachs Leads Strong Earnings for Wall Street Banks
Goldman Sachs (NYSE) saw its stock climb more than 2% after reporting a significant increase in second-quarter profit, driven by higher fees from debt underwriting and robust performance in its fixed-income trading division.
BlackRock (NYSE) reported record assets under management, reaching $10.65 trillion in the second quarter, thanks to rising client asset values and increased investments in the company’s ETFs, pushing its shares up 0.3%.
Bank of America (NYSE) and Morgan Stanley (NYSE) are set to report their earnings on Tuesday, followed by chipmaking giant ASML (AS) on Wednesday and tech leader Netflix (NASDAQ) on Thursday.
Apple Gains on AI Prospects; Macy’s Dips on Failed Buyout
Apple Inc (NASDAQ) rose 2% after Loop Capital upgraded the company’s rating to buy, citing its promising venture into artificial intelligence. Additionally, Bloomberg reported a 33% increase in Apple’s annual revenue in India, boosting investor confidence.
Conversely, Macy’s Inc (NYSE) fell 12% after ending buyout negotiations with Arkhouse and Brigade, which had proposed a $6.9 billion takeover to take the department store private.
Trump to Announce VP Pick
Former President Donald Trump is expected to announce his choice for vice president at 16:30 ET. Ohio Republican Senator James David Vance is anticipated to be the nominee.
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