(New York) The New York Stock Exchange closed higher on Monday, with the Dow hitting a new record high, after former US President and Republican candidate Donald Trump survived an assassination attempt on Saturday.
The Dow Jones Industrial Average rose 0.53% to a record high, while the tech-heavy NASDAQ Index gained 0.40% and the S&P 500 gained 0.28%, according to preliminary results.
“I think the market is breathing a sigh of relief. There was a lot of concern this weekend,” after the shooting that slightly injured Mr. Trump during a campaign rally, said Jack Ablin of Cresset.
“From what we see, it seems that the chances of Donald Trump regaining the White House have increased,” the analyst continued, adding that, for their part, “the discussions about Joe Biden’s age have died down a bit.”
But for him, between interest rates and the evolution of stocks, “the market is positioning itself more for a Trump victory.”
“We think it will be good for stocks but probably not for bonds,” Ablin added.
Donald Trump’s policy risks seeing an increase in customs tariffs “which will probably be favorable to companies but which could lead to inflation,” the analyst explained.
Tesla climbed 1.78%, boosted – despite the announced delay in the presentation of its autonomous robotaxi – by the idea that customs duties on Chinese electric vehicles imposed by a Republican administration would be a good protection for the manufacturer’s market.
His boss Elon Musk has officially sided with Mr Trump after Saturday’s attack.
Beyond political considerations, as the Republican convention began in Milwaukee (Wisconsin) on Monday, which will formalize Mr. Trump’s candidacy for the presidency on Thursday, investors also focused on a new intervention by the president of the Federal Reserve (Fed).
Jerome Powell was encouraged by the slowdown in inflation in June, a positive signal for an upcoming rate cut.
At the stock market, banks kicked off the quarterly corporate earnings season.
Goldman Sachs rose 2.66% after reporting second-quarter net profit more than doubled, benefiting from stronger financial markets and activity in the mergers and acquisitions sector.
Alphabet, Google’s parent company, gained 0.75% as the group is said to be close to acquiring US start-up Wiz, an Israeli cybersecurity company. If successful, the deal would be valued at $23 billion, according to the Wall Street Journal.
Macy’s department stores fell 11.76% as the troubled retailer ended talks with a group of investors, saying their takeover offer was insufficient.
Toronto Stock Exchange
North American stock markets continued their momentum on Monday as growing investor confidence in former U.S. President Donald Trump’s possible return to the White House translated into further gains.
The S&P/TSX composite index closed up 78.16 points at 22,751.68.
The Canadian dollar was trading at 73.19 cents US, down from 73.38 cents US on Friday.
On the New York Commodity Exchange, crude oil fell 30 cents to $81.91 per barrel, and natural gas fell 17 cents to $2.16 per million BTU.
The gold contract rose $8.20 to $2,428.90 an ounce and the copper contract fell seven cents to $4.53 a pound.
The Canadian Press