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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%.