U.S. stock markets are continuing their upward trajectory, reaching new highs driven by strong momentum on Wall Street. Trading began on Monday with the S&P 500 rising by 0.4%, poised to surpass its record high from the previous week. The Dow Jones Industrial Average also climbed, adding 271 points and on track to establish a new record. The Nasdaq composite followed suit with a 0.5% increase. Sectors particularly benefiting from improved re-election prospects for former President Donald Trump are experiencing strong performance. Shares of Trump Media & Technology Group, the company behind the Truth Social platform, witnessed a significant surge, climbing nearly 42%. Longer-term Treasury yields also saw an increase.

What Drove Wall Street Higher

On Monday, Wall Street saw an upward trend as markets absorbed recent corporate earnings and potential impacts from a rally held for former President Donald Trump over the weekend.

Prior to the market opening, futures for the S&P 500 experienced a 0.5% rise, while futures for the Dow Jones Industrial Average increased by 0.6%.

Trump Media & Technology Group Corp. saw a substantial premarket boost, with shares rising as much as 70%. As of 9 a.m. in New York, shares were up over 49% at $46.15 on the Nasdaq.

The shooting that occurred at Trump’s rally in Butler, Pennsylvania, is being investigated as an attempted assassination of the former president, who is currently campaigning for a second term. The Republican National Convention commences on Monday in Milwaukee.

BlackRock saw a slight increase, edging up less than 1%, after exceeding profit targets. Goldman Sachs also experienced a modest rise after surpassing analyst expectations.

Burberry’s shares plunged by over 15% following the announcement of Joshua Schulman as the new CEO, replacing Jonathan Akeroyd. This news came as Burberry reported a 21% decrease in first-quarter revenue and a suspension of its dividend.

Federal Reserve Chair Jerome Powell is scheduled to speak at the Economic Club of Washington on Monday. This marks his first public comments since recent inflation data revealed a second consecutive month of easing consumer prices in June. Powell is expected to address both the U.S. and global economies and discuss data the Fed is monitoring to combat inflation.

Investors are seeking clues about the potential timing for the Fed to begin cutting interest rates, with many anticipating a potential rate cut in September instead of at the Fed’s upcoming meeting later this month.

Friday’s U.S. inflation report showed higher-than-expected wholesale price increases, tempering the optimism that arose from the previous day’s better-than-expected consumer inflation data. This trend could offer further evidence to the Fed of slowing inflation, potentially leading to a reduction in its main interest rate, currently at its highest point in over two decades.

Markets are also closely monitoring a four-day meeting in Beijing for measures aimed at reviving China’s property market and addressing local government debt. China’s economy witnessed a slower-than-anticipated 4.7% annual growth rate in the last quarter, with quarterly growth slowing to 0.7% from 1.5% in the first quarter.

Economic data from China presented a mixed picture, according to Yeap Jun Rong of IG, with the figures failing to provide clear signals ahead of the upcoming Big Plenum meeting. Hong Kong’s Hang Seng index fell by 1.5%, driven by substantial selling in the property sector, while the Shanghai Composite experienced a slight decrease of less than 0.1%.

In other market developments, U.S. benchmark crude oil lost 7 cents, settling at $82.14 per barrel. Brent crude also fell by the same amount, reaching $84.96 per barrel. The U.S. dollar weakened to 158.08 Japanese yen from 158.16 yen, while the euro strengthened to $1.0905 from $1.0894.

On Friday, U.S. stocks rose as mixed signals regarding bank profits and inflation failed to diminish Wall Street’s conviction that easier interest rates are on the horizon. The S&P 500 and Dow both experienced a 0.6% increase, the Nasdaq composite gained 0.6%, and the Russell 2000 surged 1.1%, marking its best week in eight months.