U.S. stocks are rising towards new records, fueled by strong momentum on Wall Street. At the start of trading on Monday, the S&P 500 increased by 0.4%, poised to surpass its record high set last week. The Dow Jones Industrial Average climbed 271 points, also heading for a new record, while the Nasdaq composite advanced 0.5%. Sectors performing particularly well included those benefiting from improved re-election prospects for former President Donald Trump. Shares of Trump Media & Technology Group, the company behind the Truth Social platform, surged nearly 42%. Longer-term Treasury yields also rose.
What Drove Wall Street Higher
Wall Street climbed on Monday as markets digested more corporate earnings and potential impacts from a shooting at a rally for former President Donald Trump over the weekend.
Before the opening bell, futures for the S&P 500 rose 0.5%, and futures for the Dow Jones Industrial Average increased by 0.6%.
Trump Media & Technology Group Corp. saw a significant premarket boost, with shares rising as much as 70%. As of 9 a.m. in New York, shares were up over 49% at $46.15 on the Nasdaq.
The shooting at Trump’s rally in Butler, Pennsylvania, is being investigated as an attempted assassination of the former president, who is campaigning for a second term. The Republican National Convention starts Monday in Milwaukee.
BlackRock edged up less than 1% after exceeding Wall Street profit targets, while Goldman Sachs saw a slight increase after also surpassing analyst expectations.
Burberry’s shares plummeted more than 15% after the announcement of Joshua Schulman as the new CEO, replacing Jonathan Akeroyd. This came as Burberry reported a 21% drop in first-quarter revenue and suspended its dividend.
Federal Reserve Chair Jerome Powell will speak at the Economic Club of Washington on Monday, marking his first public comments since recent inflation data showed consumer prices easing for the second consecutive month in June. Powell is expected to address the U.S. and global economies and discuss data the Fed is monitoring to combat inflation.
Investors are looking for clues about when the Fed might start cutting rates, with many expecting a potential rate cut in September rather than at the Fed’s next meeting later this month.
Friday’s U.S. inflation report showed higher-than-expected wholesale price increases, tempering optimism from better-than-expected consumer inflation data the previous day. This trend could provide the Fed with more evidence of slowing inflation, potentially leading to a cut in its main interest rate, currently at its highest in over two decades.
Markets are also watching a four-day meeting in Beijing for measures to revive China’s property market and address local government debt. China’s economy grew at a slower-than-expected 4.7% annual rate in the last quarter, with quarterly growth slowing to 0.7% from 1.5% in the first quarter.
Economic data from China presented a mixed picture, according to Yeap Jun Rong of IG, with the figures offering no clear signals ahead of the upcoming Big Plenum meeting. Hong Kong’s Hang Seng index fell 1.5%, driven by heavy selling in the property sector, while the Shanghai Composite slipped less than 0.1%.
In other markets, U.S. benchmark crude oil lost 7 cents to $82.14 per barrel, and Brent crude fell by the same amount to $84.96 per barrel. The U.S. dollar declined to 158.08 Japanese yen from 158.16 yen, while the euro rose to $1.0905 from $1.0894.
On Friday, U.S. stocks rose as mixed signals on bank profits and inflation failed to shake Wall Street’s belief that easier interest rates are forthcoming. The S&P 500 and Dow both climbed 0.6%, the Nasdaq composite gained 0.6%, and the Russell 2000 surged 1.1%, marking its best week in eight months.
Featured Image: Freepik @ wirestock
