Janice R. Andrews
CNN, New York — Following Saturday’s attempted assassination of former President Donald Trump, US stock futures mostly stayed flat. The markets appeared stable despite the event, which Trump survived.
S&P 500 futures increased by 0.1%, Nasdaq Composite futures stayed constant, and Dow futures increased by 65 points, or 0.2%. This indicates that the market is responding calmly in spite of the potentially unstable incident.
The Event
The FBI has determined that the former president was the target of an attempted assassination after he was shot in the ear during a Butler, Pennsylvania, rally. Following the shooting, the Trump campaign stated that the president was doing “fine.” In addition to the gunman’s death, one participant also perished and two onlookers suffered serious injuries.
Political Responses
Shortly after the incident, President Joe Biden gave a speech to the country in which he denounced the violence and expressed relief that Trump had not been gravely injured. In addition, Biden stated that he had a conversation with Trump after the shooting.
The Republican Party is anticipated to formally nominate Trump as its nominee for the 2024 presidential contest at the Republican National Convention, which gets underway in Milwaukee on Monday. It is also expected that Trump will reveal his running mate at the convention.
Consequences for the Market
The murder attempt on a prominent political figure may have resulted in substantial instability, as markets often favor stability. But since Trump only suffered minor wounds, the market’s assessment of the presidential contest hasn’t changed all that much. It is still believed that Trump will win the forthcoming election.
In the event that Trump wins in November, tariffs would likely rise and current tax cuts will likely be preserved or even expanded. In a CNN-hosted presidential debate, Trump reaffirmed his plan to apply a 10% tariff to all imports. A policy like that would probably increase inflation and raise doubts about future interest rate reductions.
Forecasts of the Economy
According to study by Morgan Stanley, extending the tax cuts from 2017 would significantly raise deficits. The US dollar would rise even further as a result, as it is now trading at high levels. It might, however, also exacerbate America’s persistent inflation problem, which has recently begun to show some indications of relief.
Future Financial Reports
Major financial firms including Goldman Sachs (GS) and BlackRock (BLK) are due to declare their earnings this week, making it an important week for earnings reporting. Investors will be attentively observing these reports to look for clues about the direction of the market and the state of the economy.
US markets have been remarkably resilient in the wake of the dramatic event of a significant political figure being targeted for assassination. Investor confidence that the existing political and economic direction will not change is reflected in the stability of futures trading. The markets will be keenly watching Trump’s preparations for the Republican National Convention, especially with important earnings reports coming up.
This consistent reaction from the market highlights how resilient the financial industry is to political unpredictability. Investors and experts will be closely monitoring any new changes as the election campaign moves forward and discussions about economic policies continue.
