Markets
Dow Closes at Record Highs After Trump Survives Assassination Attempt
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Some investors have increased their bets on former President Donald Trump’s victory over President Joe Biden in November’s election.
CNN New York —
U.S. markets rose on Monday as investors processed the weekend’s attempted assassination of former President Donald Trump.
The Dow rose 211 points, or 0.5%, to close at a new all-time high. That comes after the blue-chip index hit a new all-time high on Friday and climbed back above 40,000 after encouraging inflation data.
The S&P 500 gained 0.3% and the Nasdaq Composite added 0.4%.
Gamblers have increased their bets on Trump beating President Joe Biden in November’s election: A contract betting on Trump’s victory sold for 68 cents on Monday, implying a 67% chance the former president will win the election, according to election prediction marketplace PredictIt. That’s up from 60 cents on Friday. A contract betting on Biden’s victory was priced at 26 cents on Monday.
The U.S. dollar rose 0.1% as of 4:00 p.m. ET on Monday. The price of bitcoin rose 4%. The Republican Party’s campaign platform promises to “end the Democrats’ illegal and un-American actions cryptocurrency crackdown.”
Shares of Trump Media & Technology Group, the former president’s social media company, rose 31.4%.
Trump Monday U.S. Senator from Ohio J.D. Vance appointed as his running partner.
A Trump victory in November likely means that maintaining or expanding tax cuts and increased tariffs. During last month’s presidential debate hosted by CNN, the former president reiterated his desire to impose a 10% tariff on all imports, which would likely increase inflation and call into question interest rate cuts.
An expansion of the 2017 tax cuts would significantly increase deficits, according to research from Morgan Stanley.
While economic growth looks positive for the U.S., some investors worry it could reaccelerate inflation. The Federal Reserve has raised interest rates to a painful 23-year high to tame runaway inflation, driving up borrowing costs for everything from mortgages to student loans to car payments. While the central bank has signaled a rate cut for 2024, rates have yet to move as policymakers look for more signs that inflation is cooling.
Economic expansion threatens to undo the central bank’s hard-won progress.
“A second Trump presidency would mean expansionary economic stimulus across the board, lower income taxes, less regulation, and higher tariffs,” wrote Mark Malek, chief investment officer at Siebert Financial, in a Monday note. “With painful inflation still high but perhaps on its way out, the economy is in a weak state where too much, too fast, growth could lead to a rekindling of 2022-like spikes in price growth.”
As stocks settle after the trading day, levels may fluctuate slightly.