U.S. Stocks Reach Record Levels Ignoring Trump’s Assassination Attempt

U.S. Stocks Reach Record Levels Ignoring Trump’s Assassination Attempt: U.S. stocks surged to all-time highs as market volatility expectations
failed after the assassination attempt on Donald Trump, which boosted his chances of reaching the White House.
Trump has chosen Ohio Senator J.D. Vance as his running mate for the presidential election
.


Contents

Jerome Powell’s Statements

A New Generation of Republicans

Major Stock Indices Rise

U.S. Bonds Rise

Analysts Reactions

Performance of Major Companies

Neil Dutta’s Comments

Greater Focus on Inflation Data

Electoral Impacts

Impact of the Assassination Attempt on Winning Chances

Republican National Convention

 

 

 

 

Jerome Powell’s Statements

Traders also closely monitored statements from Jerome Powell,
who noted that recent inflation readings had bolstered confidence and that the economy was performing “extremely well.”
He also pointed out that the labor market was heading towards better balance and that
the time lag between adopting monetary policy and its effects meant that the Fed could intervene before inflation reached 2%.
The Fed Chairman also clearly refused to signal any timing for interest rate cuts, stating that the policy was tight “but not overly so.”

 

A New Generation of Republicans

Vance, 39, is nearly four decades younger than the 78-year-old Trump.
He is a fresh voice contributing to the Republicans’ efforts and enhancing their appeal to the working class,
which previously formed a core base for the Democratic Party in battleground states like Michigan, Wisconsin, and Pennsylvania.

 

Major Stock Indices Rise

All major stock indices rose, with the S&P 500 achieving its 38th record high this year.
Trump Media & Technology Group Corp’s stock jumped by 30%.
The candidate’s chances boosted the positions of oil producers, weapons manufacturers, and private prisons.
His support for cryptocurrencies raised the value of Bitcoin and companies in the industry.
Tesla’s stock soared as Elon Musk endorsed Trump.
Solar energy and marijuana company stocks fell as Democrats became more supportive of these sectors.

 

U.S. Bonds Rise

Yields on 30-year U.S. bonds rose above those of 2-year bonds for the first time since January,
betting that Trump would adopt an expansionary fiscal policy if he won the U.S. presidential election in November. The dollar rose slightly.

 

 

 

 

 

Analysts Reactions

John Stoltzfus from Oppenheimer Asset Management said,
“We were shocked by the assassination attempt on former President Trump,
but we believe the markets will absorb the news quickly and without much fuss.
Shocking events do not deter investors; we expect them to remain focused on economic outcomes and earnings reports.”

 

Performance of Major Companies

The S&P 500 index rose to around 5630 points. The performance of major companies varied.
Apple shares peaked after Morgan Stanley classified it as the top pick.

Nvidia shares declined. The Russell 2000 index of small companies rose by 2%.
Goldman Sachs shares rose as earnings exceeded plans to reduce the pace of share buybacks.
Macy’s Inc. shares fell after the company ended acquisition talks.

 

Neil Dutta’s Comments

Neil Dutta from Renaissance Macro Research said,
“The only reason for not cutting interest rates in July is the illogical mindset followed by institutions when they say:
‘Well, we need to prepare the markets for that.’ I don’t understand it, but that is the case.”

 

Greater Focus on Inflation Data

Mark McCormick at TD Securities believes the markets are “less concerned with the elections”
and more eager to enjoy the decline in U.S. data surprises, especially the recent Consumer Price Index reading.

 

Electoral Impacts

Peter Boockvar from The Boock Report said, “Everyone is trading on their best Trump-related strategies—
but I think we’ve seen over the past century that stock market movements are more random than a president can impose.”

 

Impact of the Assassination Attempt on Winning Chances

According to PredictIt data, the chances of the potential Republican candidate,
who was shot during a rally in Pennsylvania on Saturday, winning a second term has increased following the attack.

 

Republican National Convention

The Republican National Convention in Milwaukee, held from Monday to Thursday,
marked the culmination of Trump’s control over the party. According to a post on the social media site X,
the former U.S. president told Fox News that he would announce his vice-presidential pick today.

 

U.S. Stocks Reach Record Levels Ignoring Trump’s Assassination Attempt

Key Economic Events and Data Anticipated This Week

Key Economic Events and Data Anticipated This Week: Attention in the United States will centre around Personal Consumption Expenditures (PCE) Price Index data, alongside reports on personal income and spending and statements from several Federal Reserve officials including Chairman Powell.

 

Content:

Key Economic Events and Data Anticipated This Week

Mixed Performance in Stock Indices at the End of Last Week’s Trading

A decline in Oil Prices at the End of Last Week’s Trading

 

 

 

Key Economic Events and Data Anticipated This Week

Attention in the United States will focus on Personal Consumption Expenditures (PCE) Price Index data,
reports on personal income and spending and statements from several Federal Reserve officials,
including Chairman Powell, which is of significant interest to investors.
Other key data includes durable goods orders, the final reading of the fourth quarter GDP growth,
consumer confidence, corporate earnings, and housing market indicators including new and pending home sales.

Japan will have a busy week with the Bank of Japan’s Summary of Opinions, unemployment rate,
industrial production, and retail sales.
Finally, Canada will release its GDP growth estimates for February.

 

Mixed Performance in Stock Indices at the End of Last Week’s Trading

In Friday’s trading, U.S. stocks showed mixed performance, with some indices rising and others falling.
Gains were recorded in the technology, utilities, and healthcare sectors,
while the financial, consumer goods and telecommunications sectors suffered losses.

In New York, the Dow Jones Industrial Average closed by 0.77%,
the Standard & Poor’s 500 Index fell by about 0.14%,
and the Nasdaq Composite Index rose by about 0.16%.

Among the leading stocks in the Dow Jones Industrial Average,
Boeing’s share rose by 0.64%, Apple’s rose by 0.53%, and Amazon.com’s increased by 0.40%.

On the other hand, the number of stocks that declined exceeded the number of stocks that rose on the New York Stock Exchange,
with 1948 stocks declining compared to 917 stocks rising, while 68 stocks remained unchanged.
On the Nasdaq, stocks failed to maintain a clear direction, with some sectors rising and others declining.
Stock performance can be influenced by factors such as economic and political developments,
company results, global events, and investor expectations.

 

 

 

A decline in Oil Prices at the End of Last Week’s Trading

Oil prices fell on Friday, with no significant change over the week,
influenced by expectations of a ceasefire in Gaza while concerns related to the war
in Europe increased after yesterday’s attacks on Russia and a decline in the number of oil drilling rigs in the United States.

Brent crude contracts for May delivery fell by 35 cents to settle at $85.43 a barrel,
while U.S. crude contracts fell by 44 cents to settle at $80.63 a barrel.
Both types of crude recorded a change of less than 1% over the week.

Everyone is awaiting the results of the weekend regarding the ceasefire in Gaza,
with success in peace talks potentially allowing Houthi militants in Yemen to permit oil tankers to pass through the Red Sea.

Regarding the ongoing talks in Qatar, U.S. Secretary of State Antony Blinken,
expressed on Thursday his belief that an agreement to cease-fire in Gaza between Israel and Hamas could be reached.

 

Key Economic Events and Data Anticipated This Week

Oil jumps over $100 and the Russian-Ukrainian situation is getting worse

Oil jumps over $100 and the Russian-Ukrainian situation is getting worseOne man’s sludge is another man’s liquid gold! Oil rose to an almost 8-year high, following the geopolitical tensions currently taking place in Europe

Evest follows market developments in the following report.

 

Topics:
Oil above $100
European stock indices are falling
Latest Updates on the Russo-Ukrainian War
US President Joe Biden
Russian Deputy Defense Minister Nikolai Pankov
US Secretary of State Anthony Blinken
The European Union imposed sanctions

 

Oil above $100

On Thursday morning, oil prices exceeded a 7-year high, against the backdrop of rising geopolitical tensions,
and the price of North Sea Brent oil reached $100 per barrel for the first time since September 2014.

The cost of Brent crude futures for April on the London Stock Exchange ICE Futures rose by $100.01 per barrel,
3.27% higher than the closing price of the previous session.

US oil futures’ prices for March in electronic trading on the New York Mercantile Exchange (NYMEX) rose by 3.74% up to $95.54 per barrel.

 

 

European stock indices are falling

European stock indices mostly declined against the background of Wednesday’s trading, except for the British index.

The composite index of the region’s largest companies, the Stoxx Europe 600, fell on Wednesday by 0.28% to 453.86 points.

The German DAX index fell by 0.42% and ends trading at the lowest level in 11 months, the French CAC 40 index fell by 0.1%,
the Italian FTSE MIB index declined by 0.34% and the Spanish IBEX 35 index declined by 0.63%.

The British FTSE 100 index added 0.05%.

Pressure is being put on European markets by the continued escalation of tensions around Ukraine.

Kyiv reported new cyber-attacks on government sites, blaming Moscow, and declared a state of emergency in the country as of February 24. 

In the meantime, Russia announced the evacuation of the country’s embassy staff in Ukraine. 

According to analysts, new reports of cyber-attacks on government sites and banks in Ukraine raise concerns that a direct Russian attack on the country is imminent.

“Markets need to deal not only with the conflict itself but also concerns about further Western sanctions against Moscow, as well as Russian retaliatory sanctions.”

German Chancellor Olaf Scholz said Tuesday that he has halted the certification process for Nord Stream 2,
and the White House is planning to announce sanctions against the gas pipeline operator,
Nord Stream 2 AG, according to US media.

On the other hand, inflation in the Eurozone reached a record high with high prices of natural gas, coal and electricity.

Consumer prices in the eurozone rose by 5.1% in January compared to the same period last year, a record high,
according to final data released on Wednesday by the European Statistics Office.

The statements coincided with both the initial estimate and analysts’ unanimous expectations.

Energy prices rose by 28.8%, and the cost of food, alcohol and tobacco products rose by 3.5%.

The inflation rate, excluding energy, was 2.5%.

Consumer price growth in January was 0.3% compared to the previous month, the lowest in six months.

 

The stock prices of European companies involved in the construction of Nord Stream 2 fell at the end of trading.

Therefore, the price of French securities, Engie, fell by 0.1%, Shell by 0.6%, OMV by 2.4% and Onyber by 9.3%.

 

 

Latest updates on the Russo-Ukrainian War

On Thursday, it became known that Russia would conduct a special military operation in Donbas in accordance with the Charter of the United Nations,
the resolution of the Council of the Union and the agreements with separate Donetsk and Luhansk. 

I have decided to conduct a special military operation, aimed at protecting persons who have been harassed and genocide by the Kyiv regime for eight years.

We will therefore strive for Ukraine’s demilitarization,” said Russian President Vladimir Putin in his speech. 

We must bring to justice those who committed many bloody crimes against civilians,
including citizens of the Federal Republic of Russia,” he added.

The President of Russia demanded that the Ukrainian army lay down its weapons and threatened an overwhelming response to those foreign States that decided to intervene in the situation.

Earlier, the heads of the two separate states appealed to Putin, in order to avoid civilian casualties and prevent a humanitarian disaster in Donbas,
to provide assistance in repelling aggression from the Ukrainian armed forces, as they described.

 

US President Joe Biden

In turn, US President Joe Biden threatened Russia with accountability for its actions against Ukraine. 

“The United States and its allies and partners will respond in a unified and decisive manner.

Russia will be held accountable by the world,” Biden said in a statement issued by the White House.

The Federation Council approved the use of the Russian Armed Forces outside the territory of Russia with regard to the situation concerning Donbas.

 

Russian Deputy Defense Minister Nikolai Pankov

Russian Deputy Defense Minister Nikolai Pankov said at the meeting that this had resulted from the fact that the situation in Donbas was escalating
and Russia must protect the population.

For his part, EU diplomat Josep Borrell said on Tuesday that the package of sanctions that the EU is preparing to adopt against Russia will bring severe damage to the country.

Borrell also noted that the European Union is working in coordination with the United States, the United Kingdom and Canada.

 

US Secretary of State Anthony Blinken

United States Secretary of State Antony Blinken said that if Ukraine’s situation escalated, Russia would face serious consequences.

He noted that such actions by Moscow would strengthen NATO in Europe, and Ukraine would be provided with additional security assistance,
in addition to diplomatic, political, economic and humanitarian support.

US President Joe Biden announced that he had ordered sanctions against Nord Stream 2 operator and Nord Stream 2 AG.

“Today my Administration has imposed sanctions on Nord Stream 2 AG and its leaders,” the White House said in a statement on Wednesday.

“As I said, we will not hesitate to take further action,” Biden added.

 

The European Union imposed sanctions

The European Union imposed sanctions on 351 deputies of the State Duma and 27 other dignitaries and organizations.

The measures include the freezing of assets and an embargo on the provision of funds to listed individuals and entities,
as well as an embargo on travel and transit through the European Union. 

The European Union has also imposed sanctions to limit Russia’s access to financial markets and capital.

Bloomberg, citing an American official, stated that US President Biden’s administration is prepared, if necessary, to impose sanctions on other Russian financial institutions,
particularly against Sberbank and VTB.

No financial institution in Russia will be safe if the invasion continues,” the agency source added.