Investing.com– The Dow rose to a new record on Monday as bets on a September rate cut rose, after Fed chief Jerome Powell said recent inflation data had boosted confidence.
At 15:45 ET (19:45 GMT), the index was up 240 points, or 0.6%, having earlier hit a record high of 40,351. The index was up 0.2% after hitting a new intraday record of 5,667.06, and the index was up 0.3%.
Recent data has boosted Fed's confidence on inflation, Powell says
Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings had increased the Fed's confidence in lowering inflation, suggesting the Fed is moving closer to rate cuts.
The Fed does not expect to wait until inflation hits its 2% target before cutting rates, and the Fed chief acknowledged that recent inflation data has increased the Fed's confidence that it is making progress in the battle against inflation.
“What’s adding to that confidence is more good data on inflation, and we’ve been getting some of that lately,” Powell said at the Economic Club of Washington, DC.
Trump survives assassination attempt, boosting chances of election victory
Former President and Republican presidential front-runner Donald Trump was the target of an assassination attempt at a campaign rally in Butler, Pennsylvania, on Saturday. The assailant fired several shots at Trump, grazing his ear.
Early responses to the attack seemed to suggest that his chances of winning the 2024 presidential race had improved, which could result in more aggressive trade policy and looser regulation on issues ranging from climate change to cryptocurrencies.
Trump is now scheduled to speak at the 2024 Republican convention in Milwaukee, where he is expected to be officially nominated as the party's front-runner for the presidential race.
Following the attack, shares of Trump Media & technology Group Corp (NASDAQ:) rose 33% in recent trading as Trump's odds of winning the presidential race increased after the former president survived an assassination attempt.
“Early analysis suggests the odds of victory in November have shifted in former President Trump's favor following the attack, with some even raising bets that the House of Representatives will tilt in favor of the Republican Party,” Stifel said in a note Monday.
Goldman continues the parade of strong quarterly results from Wall Street banks
Goldman Sachs (NYSE:) rose more than 2% after reporting a doubling of its second-quarter profit, boosted by higher debt underwriting fees and a strong performance in its fixed-income trading business.
BlackRock (NYSE:) reported that assets under management hit a record $10.65 trillion in the second quarter thanks to rising client asset values as investors poured money into the company's ETFs, sending its shares up 0.3%.
Bank of America (NYSE:) and Morgan Stanley (NYSE:) are due to report on Tuesday, while major chipmaker ASML (AS:) is due to report on Wednesday and tech giant Netflix (NASDAQ:) is due to report on Thursday.
Apple surges ahead on Loop update; Macy's sinks as acquisition spree subsides
Apple Inc (NASDAQ:) rose more than 1% after Loop Capital upgraded its rating on the company to buy, amid expectations that the tech giant's foray into artificial intelligence will make it the “base camp” for consumers using generative ai.
In addition to Loop's improvement, 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 rose 33% to $8 billion 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 announces his choice for vice president
Former President Donald Trump on Monday appointed James David Vance as his vice presidential running mate.
“After much deliberation and reflection, and considering the tremendous talents of many others, I have decided that the most suitable person to assume the office of Vice President of the United States is Senator J.D. Vance from the great state of Ohio,” Trump said Tuesday.
(Peter Nurse and Ambar Warrick contributed to this article.)
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