US close: Dow hits new record on Trump bets, Powell comments

US stocks advanced on Monday, with the Dow Jones Industrial Average reaching a new record high, as investors digested somewhat dovish comments from the Federal Reserve chair and the increased likelihood of former president Donald Trump returning to office following an assassination attempt.

The Dow finished the day up 0.5% at 40,211.72, surpassing its previous all-time closing high of 40,003.59 reached on 17 May. The S&P 500 rose 0.3% while the Nasdaq gained 0.4%.

Investors were zeroed in on Saturday's attempt on Trump's life, with many traders speculating that the incident may lead to an improved poll performance for the Republicans ahead of the November election.

The Republican National Convention also kicked off on Monday with Trump, currently leading Joe Biden in national polls, officially becoming the nominee to lead the GOP in the elections after receiving the majority of votes from national convention delegates.

"In the aftermath of the events at the weekend, Donald Trump’s chances of winning the election have surged to 67%, according to PredictIT’s survey, with Joe Biden’s chances languishing at 25%," said Kathleen Brooks, research director at XTB.

"Thus, the prospect of a second Trump Presidency has unleashed the ‘Trump trade’ on the market. For now, the Trump trade is buy American stocks and ditch everything else. For example, US stocks are rising on Monday, yet European stocks are selling off sharply."

In other news, Fed chair Jerome Powell said on Monday that inflation and economic activity had cooled in line with the Fed's expectations, and recent price data "do add somewhat to confidence" that inflation will pull back to its 2% target. However, he clarified: “I’m not going to be sending any signals one way or another on any particular meeting."

On the macro front, the Empire State manufacturing index fell to -6.6 in July, according to the New York Federal Reserve, slightly below market expectations from a reading of -6. New orders were stable, while shipments increased only ever so slightly. Despite current conditions, firms expressed optimism for future improvement, even though weak employment and capital spending plans remained a concern.

Market movers

Trump Media & Technology was the high riser of the day, surging 31% following this weekend's assassination attempt on the former president, which is thought to have improved his standing in the polls. It was also announced that Trump's criminal case regarding illegally retaining classified documents was dismissed in court.

Goldman Sachs rose 2.5% on the news that profits had soared 150% year-on-year in the second quarter on the back of increased investment banking activity.

BlackRock fell slightly despite announcing that total assets under management hit a fresh record in the second quarter, as revenues rose a less-than-expected 8% year-on-year.

Alphabet edged higher on reports it is in advanced talks to acquire cybersecurity firm Wiz for $23.0bn, according to the Wall Street Journal, potentially paving the way for Google's largest ever acquisition.

Department store retailer Macy's shares sank 12% after it terminated takeover talks with Arkhouse and Brigade.

Dow Jones - Risers

Caterpillar Inc. (CAT) $345.77 3.03%
Goldman Sachs Group Inc. (GS) $492.23 2.57%
JP Morgan Chase & Co. (JPM) $210.05 2.49%
American Express Co. (AXP) $244.00 2.25%
Walgreens Boots Alliance, Inc. (WBA) $11.70 1.74%
Apple Inc. (AAPL) $234.40 1.67%
Chevron Corp. (CVX) $158.04 1.57%
Visa Inc. (V) $268.45 1.02%
Travelers Company Inc. (TRV) $213.40 0.85%
Unitedhealth Group Inc. (UNH) $515.37 0.75%

Dow Jones - Fallers

Nike Inc. (NKE) $71.31 -2.87%
Boeing Co. (BA) $179.11 -1.76%
Verizon Communications Inc. (VZ) $40.79 -1.54%
3M Co. (MMM) $102.72 -1.27%
Procter & Gamble Co. (PG) $164.58 -1.22%
McDonald's Corp. (MCD) $251.53 -0.93%
Coca-Cola Co. (KO) $63.41 -0.46%
Salesforce.Com Inc. (CRM) $252.86 -0.44%
Johnson & Johnson (JNJ) $149.24 -0.43%
Home Depot Inc. (HD) $358.46 -0.36%

S&P 500 - Risers

FMC Technologies Inc. (FTI) $28.28 6.04%
Helmerich & Payne Inc. (HP) $39.67 5.51%
Apache Corp. (APA) $31.46 4.97%
Capital One Financial Corp. (COF) $144.61 4.48%
Discover Financial Services (DFS) $137.06 4.40%
Charter Communications Inc. (CHTR) $324.59 4.36%
United Rentals Inc. (URI) $707.41 4.10%
Everest Group (EG) $396.26 3.83%
Halliburton Co. (HAL) $35.23 3.80%
Apartment Investment & Management Co. (AIV) $8.81 3.77%

S&P 500 - Fallers

Broadcom Inc. (AVGO) $171.42 -89.92%
Macy's Inc. (M) $16.85 -11.73%
AES Corp. (AES) $17.00 -10.01%
Centerpoint Energy Inc. (CNP) $28.28 -6.67%
NextEra Energy Inc. (NEE) $70.97 -6.62%
Ralph Lauren Corp (RL) $171.06 -5.79%
NRG Energy Inc. (NRG) $75.39 -5.68%
Under Armour, Inc. (UA) $6.38 -5.48%
Under Armour Inc. Class A (UAA) $6.51 -5.24%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $395.16 -4.31%

Nasdaq 100 - Risers

Sirius XM Holdings Inc (SIRI) $3.89 4.85%
Charter Communications Inc. (CHTR) $324.59 4.36%
Fastenal Co. (FAST) $67.83 3.65%
Skyworks Solutions Inc. (SWKS) $115.88 3.16%
QUALCOMM Inc. (QCOM) $208.18 2.84%
Paychex Inc. (PAYX) $121.63 2.81%
Intuit Inc. (INTU) $658.18 2.53%
CSX Corp. (CSX) $34.60 2.40%
J.B. Hunt Transport Services Inc. (JBHT) $169.62 2.08%
Automatic Data Processing Inc. (ADP) $242.64 1.94%

Nasdaq 100 - Fallers

Broadcom Inc. (AVGO) $171.42 -89.92%
Baidu Inc. (BIDU) $93.15 -5.98%
JD.com, Inc. (JD) $26.65 -5.33%
Trip.com Group Limited (TCOM) $47.79 -4.93%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $395.16 -4.31%
Biogen Inc (BIIB) $221.58 -3.69%
Dollar Tree Inc (DLTR) $103.83 -3.29%
Starbucks Corp. (SBUX) $72.75 -2.78%
Ross Stores Inc. (ROST) $148.08 -2.41%
Idexx Laboratories Inc. (IDXX) $482.70 -2.04%