The New York Stock Exchange was trading in the green on Monday after former President and Republican candidate Donald Trump survived an assassination attempt on Saturday; bond yields were climbing, however.
The Dow Jones index was up 0.53%, the tech-heavy Nasdaq was up 0.71% and the S&P 500 was up 0.51% at around 1420 GMT.
The attack that Donald Trump survived on Saturday during a rally in Pennsylvania, “is not the only factor, but it is an important factor rooted in the
speculation that the failed assassination attempt boosted the Republican candidate’s re-election chances,” commented Patrick O’Hare of Briefing.com.
“The former president is seen by many as a more market-friendly candidate, partly because of his push for deregulation and lower corporate tax rates,” the analyst added.
At the same time, bond market investors fear that the Trump camp’s push for higher tariffs could also lead to higher inflation.
Ten-year rates rose to 4.22% from 4.18%.
For Will Compernolle of FHN Financial, “politics has come back to the forefront in financial markets.”
Treasuries are responding “to investors’ belief in the growing likelihood of a Trump return to the White House, which would bring larger deficits and higher long-term inflation,” the analyst said.
“The good news is that former President Trump was not injured more than his ear, he was not killed, and therefore I think the market will continue to do so,” Sam Stovall, investment strategist at CFRA Research, told CNBC.
Shares of DJT, owned by Donald Trump’s social network, Trump Media and Technology Group, were in high demand, soaring 24% to more than $39 at around 1350 GMT.
Beyond political considerations, as the Republican convention begins in Milwaukee on Monday, which will formalize Donald Trump’s candidacy for the presidential election on Thursday, investors will focus on a new intervention by Jerome Powell, the chairman of the Federal Reserve (Fed).