A trader works on the floor at the New York Stock Exchange on July 3, 2024.
Brendan Mcdermid | Reuters
Stocks advanced on Monday as investors bet the unsuccessful assassination attempt on former President Donald Trump will lead to big gains for the Republican presidential candidate and the GOP at the polls in November.
Friendlier fiscal policies ahead were seen as further spurring a broadening out of the bull market that started to take shape last week. Small-cap shares and banks led the gains Monday.
The Dow Jones Industrial Average jumped 300.21 points, or 0.8%, while the S&P 500 gained 0.9%. Both touched new intraday highs in the session. The Nasdaq Composite popped 1.3%, aided by a 2.5% rally in Apple following an upgrade on Wall Street.
“The good news is that former President Trump was not injured more than the ear, that he was not killed,” said Sam Stovall, chief investment strategist at CFRA Research, on CNBC’s “Worldwide Exchange.” “As a result, I think the market will continue on its momentum ways.”
The Republican National Convention commences Monday in Milwaukee, Wisconsin, with Trump leading President Joe Biden in national polls.
Insurers Humana and UnitedHealth Group, which could benefit from less cost pressures coming from a Republican administration, rose in the session. The SPDR S&P Bank ETF (KBE) and SPDR S&P Regional Banking ETF (KRE) both added around 3%.
The Russell 2000 gained more than 1%, on track for a fourth straight day. The small-cap focused index was aided on Monday after Goldman Sachs said a second Trump term could help small caps outperform, citing their ascent after his victory in 2016.
“Trump was already the clear frontrunner, and the shooting will only cement that status,” Adam Crisafulli, founder of Vital Knowledge, said in a note on Sunday.
Goldman Sachs shares rose more than 1% after posting earnings that exceeded analyst expectations. It’s one of the more than 40 S&P 500 companies reporting second-quarter earnings this week, a list that also includes household names such as Bank of America, United Airlines and Netflix as the new season ramps up.
Investors will also follow remarks from Federal Reserve Chair Jerome Powell at the Economic Club of Washington, D.C. at 12:30 p.m. ET.
