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US STOCKS-Futures rise on higher odds of Trump victory after shooting
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US STOCKS-Futures rise on higher odds of Trump victory after shooting
Jul 15, 2024 3:13 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Futures up: Dow 0.52%, S&P 500 0.43%, Nasdaq 0.50%

July 15 (Reuters) - U.S. stock index futures rose on

Monday on higher odds of presidential candidate Donald Trump

winning a second term after surviving an assassination attempt,

while interest rate cut hopes continued to lift sentiment.

Trump was shot in the ear on Saturday during a rally in

Pennsylvania in what authorities were treating as an

assassination attempt. His face spattered with blood, Trump

pumped his fist moments after the attack and his campaign said

he was fine after the incident.

Online betting site PredictIT has a Republican win at 67

cents, from 60 cents on Friday, with the Democrats at 37 cents.

The dollar rose against major currencies and Treasury yields

ticked higher on Monday. Under Trump, markets expect hawkish

trade policy and looser regulation over issues from climate

change to cryptocurrency.

"Trump as President is likely a positive for risk ... we

should see S&P500 futures and the USD push higher today," said

Chris Weston, head of research at Pepperstone.

"It's the promise of de-regulating U.S. industries which

should be the big equity kicker."

Shares of companies linked to the former U.S. president

soared in premarket trading. Trump Media & Technology Group ( DJT )

was one of the most actively traded stocks and jumped

63.5%, while software firm Phunware ( PHUN ) gained 49.4% and

video-sharing platform Rumble rose 16.7%.

Crypto stocks also leapt as bitcoin rose 8% to a

two-week high, with exchange Coinbase Global ( COIN ) up 5.7%

and miners Marathon Digital holdings ( MARA ) and Riot Platforms ( RIOT )

rising more than 6% each.

Shares of other companies expected to benefit from a second

term for Trump also increased. Gunmaker Smith & Wesson

rose 2.5% and prison operator GEO Group ( GEO ) was up 7.0%.

The gains followed a strong rally on Friday, with Wall

Street's main indexes ending the week higher and both the Dow

Jones Industrial Average and the S&P 500 touching

intraday record highs, as investors upped bets on a September

interest rate cut by the Fed after cooler-than-expected

inflation data.

Traders now see a more than 91% chance of a 25-basis point

rate cut by September, and have priced in two cuts for this

year. The Fed's last set of economic projections showed

policymakers expect to cut rates just once.

As the quarterly corporate earnings season ramps up this

week, it remains to be seen if megacaps can justify their high

valuations. Goldman Sachs ( GS ) and BlackRock ( BLK ) are

scheduled to release results before market open.

Comments from Fed Chairman Jerome Powell, as well as San

Francisco Fed President Mary Daly, are expected later on Monday

and will be parsed for clues on their assessment of the latest

data.

At 5:13 a.m. ET, Dow e-minis were up 211 points, or

0.52%, S&P 500 e-minis were up 24.5 points, or 0.43%,

and Nasdaq 100 e-minis were up 102.25 points, or 0.5%.

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