*The three major stock indexes jointly rose, with the Nasdaq up 0.40%;
*The yield of US Treasury bonds fluctuated, with the 10-year bond returning to 4.20%;
*Goldman Sachs rose 2.6%, with second quarter profit growth exceeding expectations.
On Monday, the US stock market rose across the board as the market focused on the attack on former US President Trump, and the hope of the Federal Reserve cutting interest rates also boosted market sentiment. As of the close, the Dow Jones Industrial Average rose 210.82 points, or 0.53%, to 40211.72 points, the Nasdaq rose 0.40%, or 18472.57 points, and the S&P 500 index rose 0.28%, or 5631.22 points. Russell 2000 rose 1.8%, reaching its highest level since 2022.
Market Overview
Federal Reserve Chairman Powell stated at a public event that the second quarter economic data has given policymakers more confidence in the sustainability of inflation moving towards the 2% target. Powell mentioned three latest inflation data (including last week's data), but he made it clear that he does not intend to send any specific signals about the timing of interest rate cuts.
Market expectations for the Federal Reserve to cut interest rates remain high. The pricing of federal funds rate futures shows a 25 basis point rate cut in September and two rate cuts in 2024. We are very close to the Federal Reserve's goals, which is the most important part of market psychology, "said Bill Merz, head of capital market research at United Bank Asset Management
According to CCTV News, American Republicans officially nominated former President Trump as their party's presidential candidate for the 2024 election at the Republican National Convention in Milwaukee, Wisconsin. Trump subsequently announced that Ohio Senator J.D. Vance would run as his vice presidential candidate in the 2024 presidential election.
The yield of medium and long-term US Treasury bonds fluctuated narrowly, with the 2-year Treasury bond closely related to interest rate expectations falling 0.5 basis points to 4.45%, and the benchmark 10-year Treasury bond rising 4.5 basis points to 4.23%. Investors are concerned that Trump's policy stance will increase inflationary pressure and government debt. Bob Savage, head of market strategy at Bank of New York Mellon, said, "Today's narrative is based on the Trump trade. Many investors believe that the weekend's events will increase the likelihood of the former president being elected
In terms of economic data, the New York Federal Reserve announced on Monday that the regional manufacturing business condition index fell 0.6 points month on month to -6.6 in July, marking the eighth consecutive month of contraction. In the sub indicators, the new order index slightly increased and the shipment volume also slightly improved, but the labor market situation remains weak.
As the earnings season begins, tech giants need to prove that their high valuations are reasonable, and whether temporarily lagging industry sectors can usher in a turning point is also of concern. In the short term, it appears that the rotation from tech giants to small businesses will continue, but to sustain this expansion, we need to see good earnings data, "said Ben McMillan, Chief Investment Officer of IDX Advisors
In terms of individual stocks, Goldman Sachs rose 2.6%, benefiting from better than expected debt underwriting and fixed income trading, doubling its second quarter profit and driving the S&P 500 index's financial sector up more than 1%.
Apple rose 1.7% to a record high, after being listed as a preferred stock by Morgan Stanley. Morgan Stanley believes that the launch of all artificial intelligence platforms will trigger a record breaking wave of users upgrading their smartphones, tablets, and computers.
Other star tech stocks fluctuated, with Google up 0.8%, Microsoft up 0.1%, Meta down 0.5%, Nvidia down 0.6%, and Amazon down 0.9%.
Macy's fell 11.7% after the company terminated acquisition negotiations with Arkhouse Management and Brigade Capital.
Boosted by optimistic election prospects, Trump Media surged 31.4%.
The solar energy sector is under pressure, with SolarEdge Technologies plummeting by over 15%. The prospect of Trump's election has lowered expectations for US renewable energy subsidies.
International oil prices have slightly declined as the market balances the outlook for summer energy demand and geopolitical situation. WTI crude oil fell 0.36% to $81.91 per barrel in the near month contract, while Brent crude oil fell 0.21% to $84.85 per barrel in the near month contract.
International gold prices have fluctuated upwards, and expectations of interest rate cuts continue to boost buying. The COMEX gold futures contract for July delivery on the New York Mercantile Exchange rose 0.37% to $2422.90 per ounce.