Stocks reached record highs as market volatility concerns did not materialize following an assassination attempt on Donald Trump that boosted his White House prospects.
All major equity indexes saw gains, with the S&P 500 on track for its 38th record of the year. Trump Media & Technology Group Corp. surged 35%, while oil producers, gun makers, private prisons, and health insurers benefited from the increased likelihood of a Trump victory. Trump’s support for cryptocurrency also lifted Bitcoin and related companies. Tesla Inc. saw a rally after Elon Musk endorsed Trump, but shares of solar energy firms declined due to perceived Democratic favorability towards the industry.
Treasury 30-year yields surpassed two-year yields for the first time since January on expectations of Trump pursuing a more expansive fiscal policy if elected. The dollar remained relatively stable.
Despite the shocking assassination attempt on former President Trump, market analysts expect investors to quickly digest the news and remain focused on economic and earnings results.
In corporate news, BlackRock Inc. attracted $51 billion in client cash in the second quarter, pushing the money manager to a record $10.6 trillion in assets. AutoNation Inc. warned of a cyberattack that impacted second-quarter earnings, while International Business Machines Corp.’s takeover of HashiCorp Inc. faces an in-depth antitrust review by the US Federal Trade Commission. Google parent Alphabet Inc. is in talks to acquire cybersecurity startup Wiz Inc., and Cleveland-Cliffs Inc. agreed to purchase Canadian steelmaker Stelco Holdings Inc.
Key events this week include Germany ZEW survey expectations, US retail sales, Morgan Stanley and Bank of America earnings, and the ECB rate decision.
Market movements as of 10:29 a.m. New York time show the S&P 500 up 0.6%, the Nasdaq 100 up 0.7%, the Dow Jones Industrial Average up 0.4%, the Stoxx Europe 600 down 1%, and the MSCI World Index up 0.3%. In currencies, the Bloomberg Dollar Spot Index rose 0.1%, while Bitcoin and Ether experienced gains. Bond yields and commodity prices also saw fluctuations.
This article was produced with the assistance of Bloomberg Automation.