Markets
Dow Jones closes at record high after Trump assassination attempt
Spencer Platt/Getty Images/Archive
Some investors have increased their bets on former President Donald Trump’s victory in the November election against President Joe Biden.
CNN New York —
U.S. markets rose on Monday as investors grappled with the assassination attempt on former President Donald Trump over the weekend.
The Dow Jones Industrial Average rose 211 points, or 0.5%, to close at a new record high. That comes after the flagship index hit a new all-time high on Friday and climbed back above 40,000 points after Encouraging inflation data.
The S&P 500 gained 0.3% and the Nasdaq Composite added 0.4%.
Bettors have increased their wagers on Trump winning the November election against President Joe Biden: A contract on Trump winning was priced at 68 cents Monday, implying a 67% chance the former president will win, according to election prediction platform PredictIt. That’s up from 60 cents on Friday. A contract on Biden winning was priced at 26 cents Monday.
The U.S. dollar rose 0.1% Monday at 4 p.m. ET. Bitcoin price climbed 4%. Republican Party platform promises to “end Democrats’ illegal and un-American practices” Cryptocurrency crackdown.”
Shares of Trump Media & Technology Group, the former president’s social media company, jumped 31.4%.
Trump Monday U.S. Senator from Ohio J.D. Vance as his running mate.
A Trump victory in November likely means that maintenance or extension of tax reductions and increased tariffs. In last month’s CNN presidential debate, the former president reiterated his desire to impose a 10 percent tariff on all imports, which would likely increase inflation and cast doubt on interest rate cuts.
According to Morgan Stanley estimates, an extension of the 2017 tax cuts would lead to a sharp increase in deficits.
While economic growth looks positive for the U.S., some investors worry it could cause inflation to accelerate again. The Federal Reserve has raised interest rates to a painful 23-year low to tame runaway inflation, which is driving up borrowing costs for everything from mortgages to student loans to car payments. Although the central bank has signaled a rate cut for 2024, rates have not budged yet as policymakers wait for further signs of slowing inflation.
Economic expansion threatens to derail the central bank’s hard-won progress.
“A second Trump presidency would mean an expansionary economic recovery overall, lower income taxes, less regulation and higher tariffs,” Mark Malek, chief investment officer at Siebert Financial, wrote in a note Monday. “With painful inflation still elevated but perhaps on its way out, the economy is in a weak state where growing too much and too fast could lead to the resurgence of price growth spikes like in 2022.”
As stocks stabilize after the trading day, levels may change slightly.