Wall St ends higher as investors firm bets on Trump win, rate cuts
Trump Media, crypto stocks, prison operators jump
Goldman Sachs rises after results
Macy's falls after ending discussions with Arkhouse and Brigade
Indexes up: Dow 0.53%, S&P 0.28%, Nasdaq 0.40%
Updates as of 4:12 p.m. EDT, adds market details after close
By Stephen Culp
NEW YORK, July 15 (Reuters) -Wall Street closed higher 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 feed risk appetite.
While all three major U.S. stock indexes ended well below session highs, the Dow Jones Industrial Average notched an all-time closing high.
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 areas ranging from climate change to cryptocurrencies.
Online betting site PredictIt showed bets of an election win at 67 cents for Trump, up from Friday's 60 cents, with a victory for Democratic U.S. President Joe Biden at 26 cents.
"The headline event - the attempted assassination of Donald Trump - did not result in a bottom line event," said Sam Stovall, chief investment strategist of CFRA Research in New York. "There's no change to GDP forecasts, no change to expectations that the Fed will start to cut rates in September, corporate profits are coming in ahead of expectations."
"So the momentum in the market remains based on investor optimism," Stovall added.
Sentiment was also buoyed by 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," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "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.
The Dow Jones Industrial Average .DJI rose 210.82 points, or 0.53%, to 40,211.72, the S&P 500 .SPX gained 15.87 points, or 0.28%, to 5,631.22 and the Nasdaq Composite .IXIC added 74.12 points, or 0.40%, to 18,472.57.
Among the 11 major sectors of the S&P 500, energy shares .SPNY enjoyed the biggest percentage gain, while utilities .SPLRCU were 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 advanced 2.6%.
Shares of Macy's Inc M.N dropped 11.7% 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 31.4%.
Crypto stocks also fared well, with Coinbase Global COIN.O, Marathon Digital Holdings MARA.O and Riot Platforms RIOT.O up between 11.4% and 18.3%.
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 11.4% and 9.3%, respectively.
On the downside, solar energy firms slid as the prospect of Trump's election dimmed expectations for renewable energy U.S. subsidies.
Shares of Sunrun RUN.O and SolarEdge Technologies SEDG.O tumbled 9.0% and 15.4%, 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 1.35-to-1 ratio; on Nasdaq, a 1.50-to-1 ratio favored advancers.
The S&P 500 posted 65 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 203 new highs and 33 new lows.
Volume on U.S. exchanges was 11.07 billion shares, compared with the 11.59 billion average for the full session over the last 20 trading days.
Reporting by Stephen Culp in New York
Additional reporting by Lisa Mattackal and Ankika Biswas in Bengaluru
Editing by Shinjini Ganguli and Matthew Lewis
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
