Former President Donald Trump narrowly escaped an assassination attempt during a campaign rally in Butler, Pennsylvania. The incident, where a bullet to the ear grazed Trump, had the US market reacting positively.
CNBC reported that investors and analysts predict a surge in trades favoring Trump's reelection prospects. Rong Ren Goh, a portfolio manager at Eastspring Investments in Singapore, noted that markets had already begun to anticipate a Trump victory prior to the shooting, resulting in a stronger dollar and an expectation of higher U.S. Treasury yields.
These trends are expected to intensify in the coming days as uncertainty surrounding the election diminishes.
Trump's Attempted Assassination on the 2024 US Presidential Elections
Historically, such incidents have had profound effects on election outcomes.
According to Reuters, analysts like Nick Ferres from Vantage Point Asset Management recalled that following the assassination attempt on President Ronald Reagan in 1981, Reagan's popularity soared, suggesting a potential landslide victory for Trump in November.
Besides the shooting sparking global condemnation, hundreds of billionaire investors expressed support for Trump, including Tesla CEO Elon Musk and wealthy investor Bill Ackman.
This newfound momentum for Trump is a major challenge for incumbent President Joe Biden, whose recent performance in debates and public opinion polls has been lackluster.
Looking ahead, analysts believe that should Trump win, a continuation of Trump's pro-business agenda will continue. This includes potential tax cuts and a less stringent regulatory environment. Such policies could further buoy investor confidence and drive stock prices higher, as evidenced by recent record highs in major indexes like the S&P 500 and Dow Jones Industrial Average.
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