The stock market kicked off the week on a high note, with the Dow Jones Industrial Average climbing 210 points. This surge was driven by impressive performances from Apple and Goldman Sachs, both of which hit new record highs.
Key Takeaways
- Dow Jones Industrial Average: Rose by 210 points to a new record closing high of 40,211.
- Apple (AAPL): Shares increased by 1.7%, closing at a record high of $234.40.
- Goldman Sachs (GS): Shares surged by 2.6%, reaching a new record high.
- Federal Reserve: Hopes for interest rate cuts in September boosted market sentiment.
- Economic Data: Upcoming June retail sales report could impact market trends.
Federal Reserve’s Influence
Stocks gained momentum amid growing optimism that the Federal Reserve will cut interest rates at its September meeting. This sentiment was bolstered by Fed Chief Jerome Powell’s dovish comments on inflation. Recent economic data, including a favorable Consumer Price Index (CPI) report for June, has increased the likelihood of a rate cut.
According to the CME Group’s FedWatch Tool, futures traders now see an 89% chance of a quarter-percentage point rate cut in September, up from 71% just a week ago. Powell’s remarks have added to the market’s confidence that inflation can be brought back down to the Fed’s 2% target.
Apple Hits New High
Apple (AAPL) shares rose by 1.7%, closing at a new record high of $234.40. This surge was fueled by a report from Bloomberg News indicating that Apple’s annual revenue in India reached nearly $8 billion for the 12 months ending March 31. Additionally, a bullish note from Morgan Stanley analyst Erik Woodring, who highlighted the potential of Apple’s new AI platform, Apple Intelligence, contributed to the stock’s rise. Woodring upgraded Apple to a top pick and raised his price target from $216 to $273.
Goldman Sachs’ Earnings Boost
Goldman Sachs (GS) also saw a significant increase, with shares rising by 2.6% to a new record high. The big bank’s second-quarter earnings report exceeded analysts’ expectations, both in terms of revenue and profit. Goldman Sachs reiterated its dividend hike, which was announced following last month’s stress test results. CFRA Research analyst Kenneth Leon noted that Goldman Sachs is well-positioned for higher earnings from investment banking fees, thanks to its strong asset management franchise.
Market Reaction to Political Events
In other news, Trump Media & Technology Group (DJT) saw a dramatic 31.4% increase in its stock price following an assassination attempt on former President Donald Trump. The incident occurred just before the Republican National Convention, where Trump secured his party’s nomination for the upcoming presidential election. This event has added to market volatility, with investors bracing for increased uncertainty as the election approaches.
Market Performance
The main indexes closed the day with gains:
- Dow Jones Industrial Average: Up 0.5% to 40,211.
- S&P 500: Rose 0.3% to 5,631.
- Nasdaq Composite: Gained 0.4% to 18,472.
Investors are now looking ahead to the release of the June retail sales report, which could provide further insights into consumer spending trends and impact market movements in the coming days.
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