Stocks close higher as investors optimistic about Trump's election chances post failed assassination

From Nasdaq

July 16, 2024 9:27:00 AM:

U.S. stocks closed higher on Monday, with all three major indexes ending in positive territory following investor optimism about Donald Trump’s chances in the upcoming U.S. presidential election after a failed assassination attempt. The Dow Jones Industrial Average jumped 0.5% to a new closing high of 40,211.72 points.

The S&P 500 rose 0.3%, closing at 5,631.22 points, with financial and industrial stocks leading gains. The tech-heavy Nasdaq added 0.4% to finish at 18,472.57 points. The fear-gauge CBOE Volatility Index (VIX) was up 5.30% to 13.12.

Wall Street continued its rally on hopes of a September interest rate cut by the Federal Reserve. Positive economic data, including a decrease in the inflation rate and signs of a cooling labor market, fueled investor optimism. The failed assassination attempt on Donald Trump over the weekend also increased belief in his election prospects.

Crypto stocks surged on Monday, with Coinbase Global, Inc. (COIN) and Marathon Digital Holdings, Inc. (MARA) gaining significantly. The Republican National Convention began, with Trump leading in national polls. Second-quarter earnings reports from key companies like Bank of America, Johnson & Johnson, Netflix, and American Express are also expected this week.

The New York Empire State Manufacturing Index reported a negative reading for July, falling to -6.6%. The monthly inflation rate decreased for the first time in four years, and signs of a cooling labor market are making Federal Reserve interest rate cuts in September more likely.

Read more at Barchart: Stock Market News for Jul 16, 2024