Traders work on the floor of the New York Stock Exchange during afternoon trading on June 3, 2024.
Michael M. Santiago | Good pictures
This report is from today’s CNBC Daily Open, our international market newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, wherever they are. As you see? You can subscribe Here.
Dow hits record high
The Dow Jones Industrial Average Closed like never before After surviving an assassination attempt on former President Donald Trump. The S&P 500 reached an intraday high and Nasdaq Composite rose 0.4%. Trump’s re-election prospects are seen as positive for small caps Russell 2000 Gaining 1.8%, it touched its highest level since 2022 and recorded its fourth positive day. Yield in 10 years Treasury As is the edge Investors researched Comments from Federal Reserve Chairman Jerome Powell. US oil prices Refused.
Trump praised at the RNC
Former President Donald Trump was there He celebrated with cheers at the Republican National Convention His first appearance since the attempted assassination was at a Milwaukee, Pennsylvania rally. With his right ear bandaged, Trump appeared in good spirits. Fight! Fight! As he entered the arena and waved to the audience. Earlier, Trump picked Senator JD Vance of Ohio He is contesting the Vice Presidential election in 2024 elections. Meanwhile, Elon Musk is reportedly planning A commitment of about $45 million a month to a newly formed super PAC supporting Trump.
The central bank may not wait
Pavel said The central bank will not wait until inflation reaches its 2% target Interest rates should be reduced. Because of the delayed effects of monetary policy, “If you wait until inflation gets down to 2%, you’re probably waiting too long because the tightening you do, or the tightening you have, still has the effect of driving inflation below 2%,” Powell said.
Bitcoin ‘Digital Gold’
BlackRock CEO Larry Fink, initially a Bitcoin The skeptic now sees cryptocurrency as “digital gold” and a safe haven. Investors are concerned about political instability and rising government debt. Fink believes that Bitcoin can provide uncorrelated returns and act as a hedge against currency devaluation caused by excessive scarcity. “I believe it’s an instrument you invest in when you’re most fearful. It’s an instrument when you believe countries are devaluing their currencies because of excessive deficits,” Fink told CNBC.Noise in the street.”
Asian markets mixed, Nifty edged higher
Asia-Pacific markets were mixed as investors weighed down Poor comments by Powell and former President Donald Trump Selection of Vice-Presidential Candidates, J.D. Vance who was critical of China. of Hong Kong Hang Seng Index Down 1.37%, China’s CSI 300 rose 0.21%. India benchmark Nifty 50 Japan reached an all-time high Nikki 225 Markets rose as trading resumed after a public holiday, and South Korea’s Cosby inches up. of Australia S&P/ASX 200 The index retreated from its all-time closing high on Monday.
[PRO] ‘Super 8’
UBS has updated its “Super 8” List of Best Asian Tech Stocks, considered an alternative to the US “Magnificent Seven”. These stocks are expected to outperform the rest of Asia over the next year due to strong earnings growth and attractive valuations compared to global tech peers.
Not only did Trump Media to see Shares rise 30% Following the assassination attempt on former President Donald Trump, Cryptocurrency also got a boost. This rise is becoming a political gambling platform Predict It says Trump will win the November election by a wide margin following his assassination attempt. A connection to crypto? Trump recently Raised $12 million In a fundraiser hosted by tech venture capitalists David Sachs and Samad Balihapitiya, he He criticized the Democrats’ efforts to regulate the cryptocurrency industry.
At this point, financial markets are largely behind the Trump trade.
“The market, that is, loves Trump. He’s very free market, he’s anti-growth,” said Wharton School finance professor Jeremy Siegel. CNBC’s “Squawk Box” on Monday.
But that growth comes at a price.
“In development, if we have a red sweepI think it’s more likely that we’re going to do more tax cuts than the 2017 tax cuts that were extended after the current expiration in late 2025. So even with higher deficits, that would definitely be a comparative advantage for growth,” Michael Ferroli, JP Morgan chief US economist, told CNBC.
“Even under current policy the deficit is not on a good path, and if we extend all the tax cuts, which will happen in any case, but under a red tide maybe a little bit more, you’re looking at a very painful situation. To provide.”
Goldman Sachs recommends a Trump could sustain the recent small-cap rally for a second term. The Russell 2000 It gained 6% last week and 1.8% on Monday.
“The big wild card, trade and immigration policy, is that there are a lot of unknowns, and if you go into a trade war starting in 2019, that has had a chilling effect on business sentiment and can offset some of that. Deregulation,” Ferroli said. “If you look at policy next year, we’re really entering an environment of widespread uncertainty.”
Christopher Harvey, head of equity strategy at Wells Fargo Securities, told CNBC, “When the polls come in for Trump, you’re a little more certain, and yes, we can argue whether we’re going to keep tariffs or not have tariffs, but the probability of Trump is good for the market, so that certainty is a little Positive, that’s why you’ve seen the market go up.
“Deregulation is good for who? It’s good for the banks, it’s good for the capital markets, I think you can make money in M&A, IPOs and this market.”
— CNBC’s MacKenzie Sigalos, Alex Harring, Yun Li, Hugh Son, Sarah Min, April Roach, Jesse Pound, Charmaine Jacob, Rebecca Picciotto and Amala Balakrishner contributed to this report.
