Dow, S&P500, & Nasdaq Surge on Trump’s Strengthened Election Chances 👀
Index Performances: 📈
Dow Jones Industrial Average (^DJI): +0.4%
S&P 500 (^GSPC): +0.3%
Nasdaq Composite (^IXIC): +0.4%
The stock market is on fire, and it’s not slowing down anytime soon! The Dow Jones Industrial Average surged 0.4% to close at a new all-time high above 40,000, while the S&P 500 added 0.3% and the tech-heavy Nasdaq Composite gained 0.4%. This rally is fueled by a combination of factors, including strong second-quarter results from big US banks, a potential Trump victory in the presidential election, and reassuring inflation data.
Banking Sector Sees a Resurgence 🔋
Goldman Sachs (GS) reported a profit surge of 150% amid investment banking strength, signaling a rebound in Wall Street after a two-year drought. Shares rose about 2.5%. BlackRock’s (BLK) profit beat estimates as assets under management hit a record of $10.6 trillion. These strong results have boosted investor confidence in the banking sector.
Trump’s Chances of Winning Boost Market Confidence 🤝
The recent assassination attempt on Donald Trump has strengthened his chances of winning the presidential election, and investors are betting big on a Trump victory. This has led to a surge in stocks, particularly those related to Trump’s campaign promises, such as tax cuts, trade tariffs, and deregulation. Trump Media & Technology (DJT) shares skyrocketed by over 30%, while crypto-related stocks also got a boost.
Fed Chair Powell’s Reassuring Remarks 💬
Jerome Powell, the Federal Reserve Chair, reiterated that recent inflation readings show progress in the fight against inflation. His speech reinforced market expectations that rate cuts will arrive as soon as September. Powell emphasized that the Fed doesn’t have to wait for inflation data to drop to 2% to start cutting rates, which has boosted market optimism.
Trending Tickers 📈
Here are some of the top-performing stocks from today’s trading session:
Tesla (TSLA): +10%
Apple (AAPL): +1%
3M (MMM): +1%
Honeywell International (HON): +1%
Nike (NKE): -2%
Verizon Communications (VZ): -1%
Job Openings Rebound 🥊
The number of job openings in the U.S. fought back from a more than three-year low, the Labor Department said Tuesday. Job postings popped to 8.1 million in May, with the bulk of the increase coming from government roles. This was an increase from 7.9 million in April. Job openings hit a record of 12 million in 2022. While there has been some softening, they remain above pre-Covid levels.
AutoNation Warns of Earnings Hit 🤯
AutoNation (AN), the second-largest dealership group in the US by market cap, warned that the CDK Global software hack will have a significant impact on its second quarter earnings. The company estimates that earnings per share for the quarter ended June 30, 2024, will be negatively impacted by approximately $1.50 per share, without taking into account any potential recoveries related to the incident.
Wall Street Leaders Call for Unity 🔒
Some of the biggest names on Wall Street urged unity and calm following the assassination attempt on Donald Trump. CEOs from Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK), and Bank of America (BAC) condemned the violence and called for civil discourse. Apple (AAPL) CEO Tim Cook also weighed in, saying “I pray for President Trump’s rapid recovery” and “I strongly condemn this violence.”
Market Outlook 📰
The market is poised for further growth, driven by strong earnings, a potential Trump victory, and reassuring inflation data. With the Fed signaling rate cuts in the near future, investors are optimistic about the market’s prospects. However, there are still risks to be aware of, including the ongoing impact of the CDK Global hack and the potential for further volatility in the presidential election.
