US: Dow ends at record as market digests Trump assassination attempt

THE Dow climbed to a record on Monday as markets grappled with the weekend assassination attempt on Donald Trump while digesting solid bank earnings and benign Federal Reserve commentary.

The blue-chip index piled on 0.5 per cent to finish at 40,211.72, notching its first record since mid-May.

The tech-rich Nasdaq Composite Index gained 0.3 per cent to 18,472.57, while the broad-based S&P 500 added 0.3 per cent at 5,631.22, after appearing poised for a record earlier in the day.

The Dow record came as Fed Chair Jerome Powell expressed confidence that inflation is in retreat, reiterating a stance that boosted markets last week.

Art Hogan, chief market strategist at B. Riley Wealth, said the trends in the stock market were a continuation of last week’s “rotation” movement that saw small equities advance amid weakness in Nvidia and other large tech companies that have led the market in 2024.

Politics were also a preoccupation in Monday’s markets amid talk that the assassination attempt boosted Trump’s prospects in the election. Major indices were in positive territory the entire session.

Trump was hit in the ear but not seriously injured in a gun attack during a campaign event on Saturday in Pennsylvania ahead of the Republican National Convention in Wisconsin.

The former president announced Monday that Ohio Senator J.D. Vance will be his vice-presidential nominee.

“The connection for the market is that former President Trump is seen by many to be a more market-friendly candidate due in part to his push for deregulation and a lower corporate tax rate,” O’Hare said.

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“Still, others worry that his push to increase tariffs could also lead to higher inflation.”

Among individual companies, Goldman Sachs jumped 2.6 per cent after reporting that quarterly earnings more than doubled to US$2.9 billion behind broad-based strength in the finance business.

Trump Media & Technology Group surged more than 30 per cent on the latest political developments. The stock has been volatile and tended to rise and fall with Trump’s fortunes.

Macy’s sank 11.7 per cent as it announced it has ended discussions with Arkhouse Management and Brigade Capital Management on a roughly US$6.9 billion proposed takeover deal.

Macy’s said it rejected the deal, concluding the proposal “lacks certainty of financing and does not deliver compelling value.” AFP