(Reuters) – U.S. stock index futures rose on Monday, as the likelihood of a second term for presidential candidate Donald Trump increased after he survived an assassination attempt, while hopes for interest rate cuts continued to boost sentiment.
Trump was shot in the ear Saturday at a rally in Pennsylvania in what authorities called an assassination attempt. His face covered in blood, Trump raised his fist moments after the attack and his campaign said he was fine after the incident.
Online betting site PredictIT is predicting a Republican victory of 67 cents, up from 60 cents on Friday, and the Democrats of 37 cents.
The dollar rose against major currencies and Treasury yields edged higher Monday. Under Trump, markets expect more aggressive trade policy and easing regulations on issues ranging from climate change to cryptocurrencies.
“Trump as president is probably a positive for risk…we should see S&P 500 futures and the USD move higher today,” said Chris Weston, head of research at Pepperstone.
“It is the promise to deregulate American industries that should be the primary driver of equity growth.”
Shares of companies linked to the former US president soared in premarket trading. Trump Media & Technology Group was one of the most actively traded stocks, surging 63.5%, while software company Phunware gained 49.4% and video-sharing platform Rumble advanced 16.7%.
Crypto stocks also jumped, with bitcoin rising 8% to a two-week high, exchange Coinbase Global up 5.7% and miners Marathon Digital Holdings and Riot Platforms each up more than 6%.
Shares of other companies expected to benefit from a second Trump term also rose. Gun maker Smith & Wesson gained 2.5% and prison operator GEO Group rose 7.0%.
The gains followed a strong rally on Friday, with Wall Street’s major indexes ending the week higher and the Dow Jones Industrial Average and S&P 500 hitting intraday records as investors increased bets on a September interest rate cut by the Fed after cooler-than-expected inflation data.
Traders now see a 91% chance of a 25 basis point rate cut by September, and have priced in two cuts this year. The Fed’s latest economic projections show policymakers expecting only one rate cut.
With quarterly corporate earnings season in full swing this week, it remains to be seen whether mega-caps can justify their lofty valuations. Goldman Sachs and BlackRock are set to report results before markets open.
Comments from Fed Chairman Jerome Powell and San Francisco Fed President Mary Daly are expected later Monday and will be analyzed for clues on their assessment of the latest data.
As of 5:13 a.m. ET, Dow e-minis were up 211 points, or 0.52%, S&P 500 e-minis were up 24.5 points, or 0.43%, and Nasdaq 100 e-minis were up 102.25 points, or 0.5%.
(Reporting by Lisa Mattackal in Bangalore; Editing by Shounak Dasgupta)
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
