Wall St rises as investors bet on second Trump term
Trump Media, crypto stocks, prison operators jump
Goldman Sachs, BlackRock rise after results
Macy's falls after ending discussions with Arkhouse and Brigade
Indexes up: Dow 0.44%, S&P 0.22%, Nasdaq 0.21%
Updates to 14:20 EDT
By Stephen Culp
NEW YORK, July 15 (Reuters) -Wall Street gained ground on Monday, building on Friday's rally as increasing expectations of a second Donald Trump presidency in the wake of a failed assassination attempt raised hopes of a looser regulatory environment.
The growing probability that the U.S. Federal Reserve will begin cutting its key interest rate as soon as September also helped stoke risk appetite.
All three major U.S. stock indexes were modestly higher, having pared earlier gains.
Economically sensitive small caps .RUT and transportation stocks .DJT handily outperformed the broader market.
An assassination attempt in Pennsylvania on Saturday of Trump, the presumptive Republican nominee for president, appeared to improve his chances for election. A Trump presidency would presumably result in a more hawkish trade policy, an extension of tax cuts and deregulation in a host of issues ranging from climate change to cryptocurrencies.
Online betting site PredictIt showed bets of an election win at 67 cents for Trump, after the assassination attempt, up from Friday's 60 cents, with a victory for Democratic U.S. President Joe Biden at at 26 cents.
"Trump was the prohibitive favorite even before the weekend and the kind of industries that would underperform under a Trump presidency were probably already set up to do so," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "I'm not surprised to see some of those same trades today."
Stocks were also buoyed by ongoing optimism that the U.S. Federal Reserve will enter its expected interest rate cutting phase as early as September, with as many as three total cuts by the end of the year.
"A September (rate) cut has been all but cemented," Mayfield added. "We're sitting almost exactly where we were seven months ago, which is the promise of Fed rate cuts without a recession. It’s still very much predicated to the Fed coming to the party."
Speaking before the Economic Club of Washington, Fed Chair Jerome Powell reiterated on Monday his belief that the U.S. economy can avoid recession, and recent data readings show progress in bringing inflation down to the central bank's 2% goal.
At 2:19 p.m. EDT, the Dow Jones Industrial Average .DJI rose 177.67 points, or 0.44%, to 40,178.57, the S&P 500 .SPX gained 12.17 points, or 0.22%, to 5,627.52 and the Nasdaq Composite .IXIC added 38.98 points, or 0.21%, to 18,437.42.
Among the 11 major sectors of the S&P 500, energy shares .SPNY were enjoying the biggest percentage gain, while utilities .SPLRCU were the laggards.
Goldman Sachs' GS.N second-quarter profit more than doubled, beating analyst estimates on solid debt underwriting and fixed-income trading. The broker's shares were last up 1.8%.
Investment management firm BlackRock's BLK.N assets under management hit a record high, and it also reported an 8% jump in revenue. The company's stock inched 0.3% higher.
Shares of Macy's Inc M.N dropped 11.9% after the department store scrapped buyout talks with Arkhouse Management and Brigade Capital.
The prospect of a second Trump presidency sent shares of Trump Media & Technology Group DJT.O soaring.
Crypto stocks also fared well, with Coinbase Global COIN.O, Marathon Digital holdings MARA.O and Riot Platforms RIOT.O up between 8.9% and 10.9%.
Other stocks that are expected to benefit from Trump's possible second term climbed, with Gunmaker Smith & Wesson SWBI.O and prison operator GEO Group GEO.N gaining 11.8% and 9.2%, respectively.
On the downside, solar energy firms slid as the prospect of Trump's election dimmed prospects for renewable energy U.S. subsidies.
Shares of Sunrun RUN.O and SolarEdge Technologies SEDG.O tumbled 9.9% and 14.4%, respectively.
U.S.-listed shares of Chinese companies also declined on fears of tightened trade restrictions under another Trump administration.
IShares China Largecap ETF FXI fell 2.2%.
Advancing issues outnumbered declining ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored advancers.
The S&P 500 posted 60 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 189 new highs and 28 new lows.
Reporting by Stephen Culp in New York
Additional reporting by Lisa Mattackal and Ankika Biswas in Bengaluru
Editing by Shinjini Ganguli and Matthew Lewis
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
