Daily Market Update: Trump Selects VP, Dow Achieves Record Close, Bitcoin Hailed as ‘Digital Gold’
The Dow Jones Industrial Average closed at a record high following news of former President Donald Trump surviving an assassination attempt. The S&P 500 and Nasdaq Composite also saw gains, with the Russell 2000 reaching its highest level since 2022. The Treasury yield edged up as investors analyzed comments from Federal Reserve Chair Jerome Powell, while U.S. oil prices declined.
In the realm of politics, Donald Trump has selected Senator JD Vance of Ohio as his vice presidential running mate for the 2024 election. Trump announced his decision on Truth Social, praising Vance as the best candidate. The Biden campaign criticized the choice, claiming Vance would support tax cuts for the wealthy and raise taxes on the middle class, benefiting billionaires and corporations at the expense of average Americans.
Federal Reserve Chair Jerome Powell indicated that the central bank may not wait for inflation to reach its 2% target before cutting interest rates. Powell emphasized the delayed effects of monetary policy, suggesting that waiting too long could drive inflation below 2%.
BlackRock CEO Larry Fink, previously a bitcoin skeptic, now views the cryptocurrency as “digital gold” and a potential safe haven for investors concerned about political instability and rising government debt. Fink believes bitcoin can offer uncorrelated returns and act as a hedge against currency debasement caused by excessive deficits.
Goldman Sachs exceeded profit and revenue expectations for the second quarter, driven by strong fixed-income results and lower loan loss provisions. However, the investment banking business fell short compared to competitors like JPMorgan and Citigroup. Despite this, Goldman remains a leader in market share for mergers. Expectations are high for Goldman Sachs as Wall Street businesses rebound after a challenging 2023.
Tesla’s recent rally, driven by what Wells Fargo describes as ‘retail puppy love,’ may soon face challenges according to analyst Colin Langan. Initially bearish this year, Tesla’s stock has surged 78% since April following accelerated product launch announcements.
