The dollar fell after surviving an assassination attempt over the weekend as investors weighed the prospect of Republican Donald Trump winning the US presidential election.
Longer-term U.S. Treasuries rose on expectations that Trump’s policies will boost the national debt and inflation, while cryptocurrencies and bitcoin rose. Trump has positioned himself as a supporter of cryptocurrencies.
Investors expect a Trump victory to lead to more tax cuts and fewer regulations. The S&P 500 energy sector rose more than 2%.
On online betting site PredictIt, contracts on a Trump win traded up from 60 cents to 68 cents on Friday, with a possible payout of $1. The odds of a Biden win were 26 percent.
“It’s very short-term thinking in terms of the polls and the impact on his candidacy, but also the impact on the market,” said Bruce Zarrow, managing director of Granite Wealth Management in Plymouth, Massachusetts. “We’re in an election year, and if you look at the historical results of election years, they’re usually pretty good.
The motive behind the 20-year-old gunman’s attack on Trump remains a mystery. The suspect was killed and the FBI was unable to determine any motive behind Saturday’s attack.
Investors noted comments from Federal Reserve Chairman Jerome Powell, who said on Monday that three U.S. inflation measures for the second quarter of the year “reinforce confidence.”
The Dow hit a record high in early trade, rising 2% on some positive earnings reports, including Goldman Sachs.
The Dow Jones industrial average rose 278.85 points, or 0.70%, to 40,279.75, the S&P 500 gained 23.21 points, or 0.41%, to 5,638.56 and the Nasdaq Composite rose 89.18.73% to 89.18.48.
The MSCI index of global shares rose 0.72 points, or 0.09%, to 829.27. The STOXX 600 index fell 1.02%.
Bad news from British luxury group Burberry and watchmaker Swatch Group raised questions about consumer confidence.
US retail sales data due on Tuesday will be closely watched for clues about consumer trends.
The dollar index, which measures the greenback’s performance against a basket of currencies, was down 0.07% at 104.22, while the euro was down 0.09% at $1.0896. Against the Japanese yen, the dollar rose 0.03% to 157.93.
Bitcoin rose 10.41% to $63,526.79.
Benchmark US The yield on the 10-year note rose 4.6 basis points to 4.233% late on Friday from 4.187%.
Oil prices fell slightly on concerns over demand from top importer China to offset support from OPEC+ supply curbs and tensions in the Middle East.
U.S. crude was down 30 cents at $81.91 a barrel, while Brent was down 18 cents at $84.85.