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Trump Media ( DJT ), crypto stocks, prison operators jump

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Goldman Sachs ( GS ), BlackRock rise after results

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Macy's falls after ending discussions with Arkhouse and

Brigade

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Indexes up: Dow 0.82%, S&P 0.72%, Nasdaq 0.89%

(Updated at 12:01 p.m. ET/1601 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

July 15 (Reuters) - Wall Street jumped in upbeat trading

on Monday, on a greater chance of presidential candidate Donald

Trump winning a second term after surviving an assassination

attempt, while interest-rate cut hopes also aided market

sentiment.

Under Trump, markets expect a hawkish trade policy and

looser regulations over issues from energy policy to

cryptocurrency.

Both the S&P 500 and the Dow touched intraday record

highs, while Treasury yields rose, as investors also anticipate

Trump's policies would increase inflationary pressures and

government debt.

Online betting site PredictIt showed bets of an election win

at 67 cents for Trump, after an assassination attempt on his

election rally on Saturday, up from Friday's 60 cents, with a

victory for Joe Biden at 26 cents.

"The narrative for the day rests on the "Trump Trade" with

many investors assuming the weekend events add to the former

President being re-elected," said Bob Savage, head of markets

strategy and insights at BNY Mellon.

Trump-linked stocks soared, with Trump Media & Technology

Group ( DJT ) jumping 26.8%, while software firm Phunware ( PHUN )

and video-sharing platform Rumble rose 4.6% and

5.4%, respectively.

Crypto stocks also leapt as bitcoin rose to a

two-week high. Coinbase Global ( COIN ), Marathon Digital

holdings ( MARA ) and Riot Platforms ( RIOT ) advanced between

8.9% and 10.9%.

Other stocks that are expected to benefit from Trump's

second term climbed, with Gunmaker Smith & Wesson and

prison operator GEO Group ( GEO ) gaining 11.9% and 10.5%,

respectively.

Sustained hopes for Federal Reserve interest rate cuts also

kept traders upbeat. Investors priced in an 88% odd of a

25-basis-point rate cut by September and two cuts for 2024,

according to LSEG data.

Comments from Federal Reserve Chairman Jerome Powell and San

Francisco Fed President Mary Daly will be closely watched for

their assessment of last week's inflation data.

The small-cap Russell 2000 gained 2.2% to its highest

since January 2022, in continued evidence of broad-based market

gains.

As the quarterly corporate earnings season ramps up this

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

valuations and if lagging market sectors can continue to build

on gains.

In the near term, it looks like the rotation from tech-heavy

megacaps to small caps will continue, but to sustain this

broadening, we will need to see good earnings numbers, said Ben

McMillan, chief investment officer at IDX Advisors.

At 12:01 a.m. ET, the Dow Jones Industrial Average

was up 328.71 points, or 0.82%, at 40,329.61, the S&P 500

was up 40.53 points, or 0.72%, at 5,655.88, and the Nasdaq

Composite was up 163.54 points, or 0.89%, at 18,561.98.

The S&P 500 financials index jumped 1.5%, with

Goldman Sachs ( GS ) hitting a record-high after second-quarter

profit more than doubled.

Macy's shares slumped 12.9% after the company

terminated buyout discussions with Arkhouse Management and

Brigade Capital.

Advancing issues outnumbered decliners by a 1.93-to-1 ratio

on the NYSE and by a 1.91-to-1 ratio on the Nasdaq.

The S&P index recorded 56 new 52-week highs and 1 new low,

while the Nasdaq recorded 179 new highs and 26 new lows.