Overnight – Stocks rally on rate cut hopes, Trump assassination attempt reflects America’s divide

Stocks surged higher overnight on bank earnings and increased bets for a September rate cut as Fed chief Jerome Powell said recent inflation data had added to confidence.   

Federal Reserve Chairman Jerome Powell said Monday that recent inflation readings had boosted the Fed’s confidence on bringing down inflation, suggesting the Fed is moving closer to rate cuts.  “What increases that confidence in that is more good inflation data, and lately here we have been getting some of that,” Powell said at the Economic Club of Washington D.C. The Fed doesn’t expect to wait until inflation reaches the 2% target before cutting rates, and the Fed chief acknowledged that recent data inflation data has increased the Fed’s confidence that it is making progress in the battle against inflation.  

The Former President Donald Trump on Monday named James David Vance as his vice presidential running mate. 

Company Earnings

• Goldman Sachs +2% – climbed more than 2% after reporting a more than doubling of profit in the second quarter, bolstered by higher fees from debt underwriting and a strong performance in its fixed-income trading business.
• BlackRock +1% – reported that the assets it manages hit a record $10.65 trillion in the second quarter thanks to rising client asset values and as investors pumped money into the company’s ETFs, sending its shares 0.60% higher.