Wall Street Rises Amid U.S. Election Expectations and Fed Rate Speculations
The three main Wall Street indices closed with gains on the first day of the week, renewing their all-time closing highs.
Stock averages rose driven by expectations of a potential electoral victory for Donald Trump and interest rate cuts by the Federal Reserve.
The three main Wall Street indices closed with gains on the first day of the week, renewing their all-time closing highs. Stock averages rose driven by the expectation of a potential electoral victory for Donald Trump.
The main Dow Jones index, composed of 30 giant companies’ stocks, increased by 0.53% to 40,211.72 points. The S&P 500, made up of 500 stocks, gained 0.28% to 5,631.22 points. The tech-heavy Nasdaq Composite advanced by 0.40% to 18,472.57 points.
After the attack on former U.S. President and current Republican candidate Donald Trump over the weekend, investors believe the armed assault he suffered could give him the boost he needs to win the election.
In the event of a Republican victory, an increase in public spending is anticipated, leading to a more expansionary fiscal policy that could stimulate greater consumption.
Additionally, Federal Reserve Chairman Jerome Powell stated in a speech in Washington D.C. on Monday that the central bank would not wait for inflation to reach the 2% target before lowering interest rates, as doing so would be too late.
By sector, energy (1.56%) and finance (1.42%) saw the most gains. Within the Dow Jones index, Caterpillar (3.03%) led the advances, followed by Goldman Sachs (2.57%), which today reported earnings that exceeded expectations.
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