Investing.com — The Dow Jones Industrial Average closed at a record high on Monday as expectations of a rate cut in September increased after Federal Reserve Chairman Jerome Powell said recent inflation readings boosted confidence.
As of 4 PM ET (9 PM GMT), the was up 210 points, or 0.5%, to close at a record high of 40,211.72. The was up 0.3% after hitting an intraday high of 5,667.06, and the was up 0.4%.
Recent data gives Fed more confidence in inflation, says Powell
Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings have given the central bank more confidence in keeping inflation in check, suggesting the central bank is closer to cutting interest rates.
“What will increase that confidence is better inflation data, and we’ve been getting that data recently,” Powell said at the Economic Club of Washington, D.C.
The Fed won’t wait until inflation hits its 2 percent target before cutting interest rates, and the Fed chairman acknowledged that recent inflation data has given the central bank more confidence that it is making progress in the fight against inflation.
Trump survives assassination attempt, boosting chances of election victory
Former president and leading Republican presidential candidate Donald Trump was the target of an assassination attempt during a campaign rally in Butler, Pennsylvania on Saturday, when the gunman fired multiple shots at Trump, grazing him in the ear.
Early reactions to the attack seem to suggest that Trump is more likely to win the 2024 presidential election, which could result in more hawkish trade policies and relaxed regulations on issues ranging from climate change to cryptocurrency.
Trump is currently scheduled to speak at the 2024 Republican Convention in Milwaukee, where he is expected to be formally nominated as his party’s front-runner for the presidential election.
Following the attack, shares of Trump Media & Technology Group (NASDAQ:) rose 33% in recent trading as former President Trump’s survival of the assassination attempt boosted his chances of winning the presidential election.
“Early analysis suggests that the attacks have tilted former President Trump’s chances of victory in November and have also increased the view that the House of Representatives will tilt in Republicans’ favor,” Stifel said in a Monday note.
Goldman continues strong quarterly performance for Wall Street banks
Goldman Sachs (NYSE:) reported that second-quarter profit more than doubled, helped by higher debt underwriting fees and strong performance in its fixed-income trading business, sending its shares up more than 2%.
BlackRock (NYSE:) shares rose 0.60% after the company said assets under management hit a record $10.65 trillion in the second quarter as client assets rose and investors poured money into the firm’s ETFs.
Bank of America (NYSE: Morgan Stanley (NYSE:) is scheduled to report earnings on Tuesday, while semiconductor giant ASML (AS:) is scheduled to report earnings on Wednesday and technology giant Netflix (NASDAQ:) is scheduled to report earnings on Thursday.
Apple rises on Loop upgrade, Macy’s cools off as acquisition frenzy fades
Apple (NASDAQ:) shares rose more than 1% after Loop Capital upgraded the company to a buy rating on hopes that the tech giant’s foray into artificial intelligence (AI) will position it as a “base camp” for consumers using generative AI.
In addition to the upgrade from Loop Capital, signs that Apple’s shift to India is paying off also boosted the stock: Bloomberg reported that Apple’s annual revenue in India will rise 33% to $8 billion in March 2024.
Department store Macy’s (NYSE:) fell nearly 12% after the company ended talks with Arkhouse & Brigade, which had wanted to buy the company for about $6.9 billion and take it private.
President Trump announces running mate
Former President Donald Trump on Monday accused James David Vance of as vice presidential candidate.
“After lengthy deliberations and consideration, and after taking into account many other extraordinary talents, I have determined that the person best qualified to serve as Vice President of the United States is Senator J.D. Vance of Ohio,” Trump said Tuesday.
(Peter Nurse and Amber Warrick contributed to this article.)
