U.S. stock futures and the dollar were little changed on Sunday after Republican presidential candidate Donald Trump was safe following a suspected assassination attempt on Trump’s golf course in West Palm Beach, Florida, according to the FBI.
Secret Service agents confronted an armed man in bushes near the golf course’s property line and fired at least four shots, law enforcement officials said at a press conference this afternoon.
The S&P 500 E-minis fell 0.04%. The dollar index, which measures the strength of the U.S. currency against six other major currencies, fell 0.03% to 101.07.
Bitcoin fell 0.7% to $59,445 during the day. Trump has positioned himself as a cryptocurrency candidate.
Although the market barely reacted to the news, analysts said the incident had the potential to increase volatility.
“Foreign exchange rates could experience turbulence in the coming hours if news of a second attack coincides with low trading volumes,” said Karl Schamotta, chief market strategist at Toronto-based payments service provider Corpay.
Asset classes and sectors that could benefit from a second Trump term received a boost earlier this year after Trump survived an assassination attempt in Pennsylvania on July 13.
However, the so-called “Trump trade” came under pressure last week after a highly publicized debate between Trump and Vice President Kamala Harris prompted betting markets to make a Harris victory in November more likely.
“Perhaps some will try to get back into the ‘Trump trade’ if Trump gets the kind of boost in the polls that we saw after the earlier assassination attempt – which would boost both stocks and the dollar,” said Michael Brown, senior research strategist at online broker Pepperstone in London.
“With the FOMC meeting approaching on Wednesday, market participants will likely lack conviction until we hear from Powell & Co.,” he said.
Betting markets barely reacted to the incident on Sunday, with odds for Harris in the PredictIt 2024 presidential election market at 56 cents, while odds for Trump were at 47 cents.
The Federal Reserve is in the spotlight amid uncertainty over how much the central bank will cut interest rates at its monetary policy meeting on September 17-18 and how quickly it will reduce borrowing costs in the coming months.
“The dollar could still rise if the ‘Trump trade’ recovers slightly, but the impact should be relatively modest,” said Schamotta of Corpay.
What impact did the failed assassination attempt on Donald Trump have on US stock futures and the dollar?
Table of Contents
Trump Assassination Attempt Fails to Shake Markets, Dollar, and US Stock Futures Remain Steady
In a shocking turn of events, Republican presidential candidate Donald Trump narrowly escaped an assassination attempt on his golf course in West Palm Beach, Florida, according to the FBI. Despite the alarming incident, US stock futures and the dollar remained largely unchanged on Sunday, suggesting that market participants are unfazed by the news.
The Incident: A Suspected Assassination Attempt
Secret Service agents confronted an armed man hiding in bushes near the golf course’s property line, leading to a dramatic exchange that resulted in at least four shots being fired. The swift intervention by the Secret Service prevented what could have been a catastrophic event.
Market Reaction: A Calm Response
The S&P 500 E-minis, a futures contract that tracks the US stock market, fell a mere 0.04% in response to the news. The dollar index, which measures the strength of the US currency against six other major currencies, slipped 0.03% to 101.07. Bitcoin, a cryptocurrency that Trump has been associated with, dropped 0.7% to $59,445 during the day.
Analysts Weigh In: Potential for Increased Volatility
While the market reaction was muted, analysts warn that the incident has the potential to increase volatility in the coming hours, particularly if news of a second attack emerges during a period of low trading volumes. Karl Schamotta, chief market strategist at Corpay, cautioned that foreign exchange rates could experience turbulence under such circumstances.
The “Trump Trade” and Its Implications
Earlier this year, the “Trump trade” – which refers to asset classes and sectors that benefit from a Trump presidency – received a boost after Trump survived an assassination attempt in Pennsylvania on July 13. However, the “Trump trade” came under pressure last week when a highly publicized debate between Trump and Vice President Kamala Harris led betting markets to favor a Harris victory in November.
Market Expectations: A Wait-and-See Approach
As the Federal Open Market Committee (FOMC) meeting approaches on Wednesday, market participants are likely to adopt a wait-and-see approach, according to Michael Brown, senior research strategist at Pepperstone. Brown suggests that if Trump’s popularity surges in the polls following this latest incident, some investors may reassess the “Trump trade,” which could lead to a boost in stocks and the dollar.
Key Takeaways
- The failed assassination attempt on Donald Trump has had a limited impact on US stock futures and the dollar.
- The market reaction is being closely watched for signs of increased volatility, particularly if news of a second attack emerges.
- The “Trump trade” could gain traction if Trump’s popularity surges in the polls following this incident.
- The FOMC meeting on Wednesday is likely to dominate market sentiment in the short term.
Conclusion
The attempted assassination of Donald Trump has sent shockwaves through the political and financial communities, but the market response has been surprisingly calm. As the situation unfolds, investors will be watching closely for signs of increased volatility and potential shifts in market sentiment. One thing is certain – the road to the US presidential election just got a lot more unpredictable.
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– How did the attempted assassination of Donald Trump affect U.S. stock futures and the dollar?
U.S. Stock Futures and Dollar Remain Unchanged Following Failed Assassination Attempt on Donald Trump
In a shocking turn of events, U.S. stock futures and the dollar remained largely unaffected on Sunday after a suspected assassination attempt on Republican presidential candidate Donald Trump at his golf course in West Palm Beach, Florida. According to the FBI, Secret Service agents confronted an armed man in bushes near the golf course’s property line and fired at least four shots. The incident had little impact on the markets, with the S&P 500 E-minis falling
