Stock Market Today: Dow in record close as Powell acknowledges inflation progress

Investing.com -- The Dow closed at record highs Monday on increased bets for a September rate cut as Fed chief Jerome Powell said recent inflation data had added to confidence.

At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average rose 210 points, or 0.5%, to a closing record high of 40,211.72. The S&P 500 was up 0.3% after notching a fresh intraday record of 5,667.06, and the NASDAQ Composite gained 0.4%.

Recent data has boosted Fed's confidence on inflation, Powell

Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings had boosted the Fed's confidence on bringing down inflation, suggesting the Fed is moving closer to rate cuts.

“What increases that confidence in that is more good inflation data, and lately here we have been getting some of that,” Powell said at the Economic Club of Washington D.C.

The Fed doesn't expect to wait until inflation reaches the 2% target before cutting rates, and the Fed chief acknowledged that recent data inflation data has increased the Fed's confidence that it is making progress in the battle against inflation.

Trump survives assassination attempt to boost election victory odds

Former President, and leading Republican president candidate, Donald Trump, was targeted in an attempted assassination attempt during a campaign rally in Butler, Pennsylvania, on Saturday. The assailant shot at Trump multiple times, grazing his ear.

Early responses to the attack seemed to suggest that his chances of winning the 2024 presidential race were improved, which could result in a more hawkish trade policy and looser regulation over issues from climate change to cryptocurrency.

Trump is now set to speak at the 2024 Republican convention in Milwaukee, where he is expected to be officially nominated as the party’s frontrunner for the presidential race.

Following the attack, Trump Media&Technology Group Corp (NASDAQ:DJT) surged 33% in recent trade as Trump's odds of winning the presidential race were boosted after the former president survived an assassination attempt.

"Early analysis suggests the odds of victory come November have shifted in favor of former President Trump in the aftermath of the attack with some even upping bets on the House shifting in favor of the GOP," Stifel said in a Monday note.

Goldman continues parade of strong Wall Street banks quarterly earnings

Goldman Sachs (NYSE:GS) climbed more than 2% after reporting a more than doubling of profit in the second quarter, bolstered by higher fees from debt underwriting and a strong performance in its fixed-income trading business.

BlackRock (NYSE:BLK) reported that the assets it manages hit a record $10.65 trillion in the second quarter thanks to rising client asset values and as investors pumped money into the company's ETFs, sending its shares 0.60% higher.

Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) are set to report on Tuesday, while chipmaking major ASML (AS:ASML) is due on Wednesday and tech giant Netflix (NASDAQ:NFLX) on Thursday.

Apple climbs on Loop upgrade; Macy's sinks as takeover fever ebbs

Apple Inc (NASDAQ:AAPL) rose more than 1% after Loop Capital upgraded its rating on the company to buy, on expectations that the tech giant's foray into artificial intelligence will make it the "base camp" for consumers using generative AI.

As well as the upgrade from Loop Capital, signs that Apple's shift toward India is bearing fruit also boosted the stock as Bloomberg reported that Apple's annual revenue in the country jumped 33% to $8B in March 2024.

Macy’s Inc (NYSE:M) fell nearly 12% after the department store ended negotiations with Arkhouse and Brigade, which wanted to buy Macy’s for about $6.9 billion and take it private.

Trump announces VP pick

Former President Donald Trump on Monday named James David Vance as his vice presidential running mate.

“After lengthy deliberation and thought, and considering the tremendous talents of many others, I have decided that the person best suited to assume the position of Vice President of the United States is Senator J.D. Vance of the Great State of Ohio,” Trump said Tuesday.

(Peter Nurse, Ambar Warrick contributed to this article.)

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