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Dow Jones closes up 210.82 points, making a new high, on expecta

The Dow Jones Industrial Average closed higher on Monday (July 15), boosted by expectations that the assassination of Donald Trump would give Trump the impetus to win the US presidential election , paving the way for him to ease regulations that are more favorable to the business sector. The Dow Jones Industrial Average closed at 40,211.72, up 210.82 points or +0.53%, the S&P 500 closed at 5,631.22, up 15.87 points or +0.28%, and the Nasdaq closed at 18,472.57, up 74.12 points or +0.40%.

Analysts are predicting that the assassination of Donald Trump will lead to a victory for Trump over Democratic rival Joe Biden in the November presidential election, allowing him to pursue aggressive trade policies, continue tax cuts and ease regulations on a wide range of issues from climate change to cryptocurrency.

"Trump already has a lead over Biden, and this assassination will only push Trump's lead over Biden further," said Adam Crysafulli, founder of the Vital Knowledge Institute.

"In the five presidential elections over the past 20 years, CEO confidence, consumer confidence and, particularly, small business confidence have been more receptive to Republican victories than Democrats, and that confidence has led to increased spending and investment. A Trump victory could boost the corporate earnings outlook," Goldman Sachs said in a report.

The market was also supported by investors' expectations that the Federal Reserve (Fed) will cut interest rates as many as three times by the end of the year, with the first cut coming at its September meeting.

Federal Reserve Chairman Jerome Powell said in a speech to the Economic Association in Washington, D.C., on Monday (July 15) that the Fed will not wait until inflation is at its 2% target before cutting interest rates. He also said he does not think the US economy is facing a sharp downturn after its rapid expansion.

Six of the 11 sectors that make up the S&P 500 index closed in positive territory, led by gains of 1.56% and 1.42% for energy and financials, respectively. Utilities were the biggest decliners, falling 2.36%.

Goldman Sachs shares jumped 2.6% after the bank reported second-quarter 2024 earnings per share of $8.62, above analysts' expectations of $8.34, on revenue of $12.73 billion, above analysts' expectations of $12.46 billion.

Shares of Trump Media & Technology Group Corp. (TMTG), which owns the Truth Social platform, jumped 31.4% on expectations that Trump will win the US presidential election.

Blockchain stocks surged on hopes that Trump's presidential victory would boost the cryptocurrency industry, with Coinbase up 11.4%, Riot Platforms up 17% and Marathon Digital up 18.34%.

Other companies expected to benefit from a Trump victory include Smith & Wesson, a major US gun maker, and prison management company GEO Group, which jumped 11.4% and 9.3%, respectively.
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