US markets steady following assassination attempt on Trump

US stock futures barely budged after an assassination attempt on former President Donald Trump on Saturday, signaling calm in the markets as Trump survived the incident.

Dow futures rose 65 points, or 0.2%, while S&P 500 futures rose 0.1% and Nasdaq Composite futures were unchanged.

On Saturday, the former president was shot in the ear during his rally in Butler, Pennsylvania, in what the FBI says was an assassination attempt. The Trump campaign was he was doing “fine” after the shooting.

The shooter was killed, as well as one attendee, according to authorities. Two spectators were critically injured.

President Joe Biden said he spoke with Trump after the shooting and denounced the violence in remarks shortly after.

The Republican National Convention kicks off Monday in Milwaukee, where the GOP is expected to officially nominate Trump as the Republican candidate for the 2024 presidential election. Trump is also expected to announce his running mate during the convention.

Markets crave stability, and an assassination attempt against the presumptive nominee might have thrown that into chaos. But Trump appears to have escaped with mostly superficial injuries, and the market’s thesis of the race hasn’t changed: Trump remains the frontrunner to become the next president.

A Trump win in November likely means the preservation or expansion of tax cuts and increased tariffs. During last month’s presidential debate hosted by CNN, he reiterated his desire to impose a 10% tariff on all imports, which would likely increase inflation and cast doubt on interest rate cuts.

Morgan Stanley research estimates that an expansion of the 2017 tax cuts would boost deficits sharply, sending the US dollar, which is already trading high, even higher. But it could also exacerbate America’s inflation crisis, which has begun to show signs that it is ending.

Monday also kicks off a big week of earnings, with reports from Goldman Sachs (GS) and BlackRock (BLK).