Trump, Vance, stocks, Dow, S&P, record highs
UBS managing director and senior portfolio manager Jason Katz explains what happens to markets when a Republican is elected as U.S. president.
Former President Trump officially won the GOP nomination with his vice presidential pick, Sen. JD Vance, in tow.
The Republican senator from Ohio, a former Marine, private equity alum and author of a bestseller-turned-Netflix special, received the nod on Monday, two days after the former president narrowly escaped an assassination attempt during a rally in Pennsylvania.
“Prior to this horrific event, the markets were already sniffing out, subsequent to the debate, a Trump victory. Now, investors are sniffing out a what? A ‘red sweep,'” said Jason Katz, UBS managing director and senior portfolio manager, on “Varney & Co.,” predicting what could unfold should the GOP ticket win the White House. “The tax laws of 2017 become permanent, maybe you get additional tax cuts. You will have much less erroneous regulations; we could see a very big pickup in M&A activity,” he detailed.
ELON MUSK HAILS JD VANCE, TRUMP’S VP PICK
Sen. JD Vance and wife Usha Chilukuri Vance celebrate as he is nominated to be Donald Trump’s vice president on the first day of the Republican National Convention at Fiserv Forum in Milwaukee on July 15, 2024. (Anna Moneymaker/Getty Images / Getty Images)
FED’S POWELL CONDEMNS TRUMP ASSASSINATION ATTEMPT: A ‘SAD DAY FOR OUR COUNTRY’
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 40211.72 | +210.82 | +0.53% |
| SP500 | S&P 500 | 5631.22 | +15.87 | +0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18472.565651 | +74.12 | +0.40% |
The Dow Jones Industrial Average closed firmly above 40,000 on Monday, a new record high, up 6.7% this year, with the S&P 500 just shy of its all-time high, up 18% this year. The tech-heavy Nasdaq Composite has gained 23%, closing just below its record high reached this month.
With the Republican National Convention underway, investors will be listening for details on whether the GOP’s policy platform can keep the momentum for equities going.
At a recent “How will the Election Impact the Markets?” Ameriprise virtual roundtable in late June, attended by FOX Business, Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors may be subject to more volatility through November.
“As the markets start to discount not only who sits in the White House but where control of Congress lies, that could create a period of volatility. But what we generally see historically is that no matter how the results shake out, volatility ebbs back to more normalized levels post-election day,” he noted, and then investors turn back to fundamentals. “The level of interest rates, growth and corporate profits, and obviously the trajectory for monetary policy, these are the four things that generally drive the markets,” he said.
Republican presidential candidate Donald Trump is rushed offstage during a rally on July 13, 2024, in Butler,…
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