Investing.com– The Dow surged to a fresh record Monday on increased bets for a September rate cut as Fed chief Jerome Powell said recent inflation data had added to confidence.
At 15:07 ET (19:07 GMT), the rose 281 points, or 0.7%, and had earlier hit a record high of 40,351. The climbed 0.4% to fresh a record and the gained 0.5%.
Recent data has boosted Fed’s confidence on inflation, Powell
Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings had boosted the Fed’s confidence on bringing down inflation, suggesting the Fed is moving closer to rate cuts.
the Fed doesn’t expect to wait until inflation reaches the 2% target before cutting rates, and the Fed chief acknowledged that recent data inflation data has increased the Fed’s confidence that it is making progress in the battle against inflation.
“What increases that confidence in that is more good inflation data, and lately here we have been getting some of that,” Powell said at the Economic Club of Washington D.C.
Trump survives assassination attempt to boost election victory odds
Former President, and leading Republican president candidate, Donald Trump, was targeted in an attempted assassination attempt during a campaign rally in Butler, Pennsylvania, on Saturday. The assailant shot at Trump multiple times, grazing his ear.
Early responses to the attack seemed to suggest that his chances of winning the 2024 presidential race were improved, which could result in a more hawkish trade policy and looser regulation over issues from climate change to cryptocurrency.
Trump is now set to speak at the 2024 Republican convention in Milwaukee, where he is expected to be officially nominated as the party’s frontrunner for the presidential race.
Following the attack, Trump Media & Technology Group Corp (NASDAQ:) surged 33% in recent trade as Trump’s odds of winning the presidential race were boosted after the former president survived an assassination attempt.
“Early analysis suggests the odds of victory come November have shifted in favor of former President Trump in the aftermath of the attack with some even upping bets on the House shifting in favor of the GOP,” Stifel said in a Monday note.
Goldman continues parade of strong Wall Street banks quarterly earnings
Goldman Sachs (NYSE:) climbed more than 2% after reporting a more than doubling of profit in the second quarter, bolstered by higher fees from debt underwriting and a strong performance in its fixed-income trading business.
BlackRock (NYSE:) reported that the assets it manages hit a record $10.65 trillion in the second quarter thanks to rising client asset values and as investors pumped money into the company’s ETFs, sending its shares 0.3% higher.
Bank of America (NYSE:) and Morgan Stanley (NYSE:) are set to report on Tuesday, while chipmaking major ASML (AS:) is due on Wednesday and tech giant Netflix (NASDAQ:) on Thursday.
Apple climbs on Loop upgrade; Macy’s sinks as takeover fever ebbs
Apple Inc (NASDAQ:) rose 2% after Loop Capital upgraded its rating on the company to buy, on expectations that the tech giant’s foray into artificial intelligence will make it the “base camp” for consumers using generative AI.
As well as the upgrade from Loop, signs that Apple’s shift toward India is bearing fruit also boosted the stock as Bloomberg reported that Apple’s annual revenue in the country jumped 33% to $8B in March 2024.
Macy’s Inc (NYSE:) fell 12% after the department store ended negotiations with Arkhouse and Brigade, which wanted to buy Macy’s for about $6.9 billion and take it private.
Trump to announce VP pick
Former president Donald Trump is expected to announced his choice for vice president at 16:30 ET. Ohio Republican senator James David Vance is expected to get the nod.
(Peter Nurse, Ambar Warrick contributed to this article.)
