- Indices on Wall Street open higher
- The dollar rises after the attempt on Trump over the weekend
- Bond yields gain
- Smaller companies gain the most
The new week opens again in optimistic moods, fueled by speculation about Trump's victory in the November elections. After the assassination attempt at a campaign rally in Pennsylvania, investors are pricing in even higher chances of Donald Trump winning. Interestingly, Biden's ratings have also increased compared to his potential substitute candidates from the party, including Kamala Harris. As a result, we have seen a slight strengthening of the dollar and a rise in bond yields. However, the initial gains have already been almost completely reduced. At the same time, Trump Media & Technology Group (DJT) gains more than 40% on opening to $8 billion market cap. At the opening of the cash session, the USDIDX dollar index is trading flat, US500 is gaining 0.40%, US100 0.60%, while the smaller companies index US2000 is up 1.40%.
US2000
Since the last CPI report was published, investors are betting on the first interest rate cut in the US as early as September. The prospect of easing policy has restored investors' faith in smaller companies, and today we are seeing another session of capital rotation. The US2000 index (Russell 2000) stands out clearly with gains. At the time of publication, gains are already reaching 1.50%, and bulls are battling resistance at the 2200 point level.
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Source: xStation 5
Company News
Tesla (TSLA.US) gains 4.50% on Monday as investors anticipate the Q2 earnings report and await updates on the August 8 robotaxi event. Morgan Stanley's analyst, Adam Jonas, suggests that a delay in the event could allow Tesla to showcase its broader AI capabilities, potentially linked to its ambitious Master Plan 4. Over the weekend, Elon Musk endorsed Donald Trump, which, along with a notable donation to a political action committee, has analysts speculating that Tesla might benefit from a new Trump administration.
Gains in the cryptocurrency market support crypto-related stocks. As Bitcoin to the USD 63,000 zone we can see notable gains on MicroStrategy (MSTR.US), Coinbase (COIN.US), Riot Platforms (RIOT.US) and Marathon Digital (MARA.US).
Super Micro Computer (SMCI.US) gains 1.00% after news that the copmany will join the Nasdaq-100 Index (NDX) and the Nasdaq-100 Equal Weighted Index (NDXE) on July 22nd, replacing Walgreens Boots Alliance (WBA.US).
Macy's (M.US) stock dips 15% after announcing the end of acquisition talks with Arkhouse Management and Brigade Capital Management. The board concluded that discussions did not result in a compelling, financeable proposal, despite extensive due diligence.
