Trump, Vance, stocks, Dow, S&P, are at all-time highs

Former President Trump formally clinched the GOP nomination with Senator J.D. Vance selected to be his vice presidential running mate.

The Republican senator from Ohio, a former Marine, private equity alumnus and author of a bestseller-turned-Netflix special, received the nod on Monday, two days after the former president narrowly escaped an assassination attempt during a rally in Pennsylvania.

Jason Katz, managing director and senior portfolio supervisor at UBS, said, “Before this catastrophic event, after the debate, markets were already projecting a Trump victory. Now, what are investors calling it? ‘Red sweep.’ ” , on “Varney & Company”, predicting what could spread should the GOP Values ​​ticket win the white space. He bluntly stated, “The 2017 tax laws become permanent, maybe you get additional tax cuts. You have a lot less bad regulations; we could see a huge surge in M&A activity.”

Elon Musk lauds JD Vance, Trump’s vice presidential pick

Fed’s Powell condemns Trump’s assassination attempt: ‘Sad day for our country’

The Dow Jones Commercial Reasonable closed firmly above 40,000 on Monday, a fresh record high, up 6.7% this year, while the S&P 500 is just shy of its all-time top, up 18% this year. The tech-heavy Nasdaq Composite gained 23%, down slightly from its previous reported top.

With the Republican National Conference underway, investors will be listening for details on whether the GOP’s policy platform can maintain momentum for equities.

Live updates from the RNC

In a current affairs program “How will the elections affect the markets?” At an Ameriprise Digital Roundtable in late June, which Fox Trade participated in, Anthony Saglimbene, marketplace strategist at Ameriprise Financial, said investors could face additional volatility through November.

,As markets begin to discount not only who sits in the White House, but also where control of Congress lies, that could lead to a period of volatility. But what we typically see historically is that no matter how the results come out, volatility returns to more normalized levels on Election Day,” he said, and the closest traders get back to fundamentals. “Interest rates, growth and the level of corporate profits, and obviously the trajectory of monetary policy, these are the four things that generally drive the market,” he said.

Republican presidential candidate Donald Trump stands in the crowd across the aisle during a rally in Butler, Pennsylvania, on July 13, 2024. (Anna Moneymaker/Getty Photographs/Getty Photographs)

The group was not available to comment on whether there would be any market or election implications following the assassination attempt on Trump over the weekend.

The Fed doesn’t need to wait for a rate cut.

Adverse conditions for the economy are increasing after the elections. On Monday, Federal Reserve Chairman Jerome Powell said policymakers are clearly confident about the inflation data and it is not necessary to sit idle waiting for inflation to hit their preferred target rate.

Federal Reserve Chair Jerome Powell (Kevin Dietsch/Getty Photographs/Getty Photographs)

“What that means is that if you wait until inflation gets down to 2%, you’ve probably waited too long because of the tightening that you’re doing, or the level of tightening that you have.” , that’s still going to have an impact, which will probably take inflation below 2%,” Powell advised attendees at the financial membership in Washington, D.C.

The consumer price index fell 0.1% in June vs. May, the first monthly decline since May 2020. However, year-over-year prices remain up more than 3%.

Recently, 89% of the market is pricing in a September price cut, according to CME’s FadeWatch device, which measures price movements. The rejection motion is expected in the July Assembly.

Ameriprise economist Russell Worth expects price declines in September and another in December, but he says the state of the U.S. consumer is a big driving force of the financial system.

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,What really matters most is the consumer. Consumer spending has decreased slightly. In my view, consumers are still doing well. But when it comes to spending on goods a few years ago and more recently on services, especially travel and holidays etc., they have moved ahead a bit. But consumers, generally, are in good financial shape,” he said.