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By MyHyperNews.com – Source: Reuters
Tense Standoff at Trump’s Golf Course on Sunday; Suspect in Custody
In the early hours of Monday, U.S. stock futures and the dollar remained largely unchanged, following a tense situation in Florida involving former President and Republican presidential candidate Donald Trump. Trump was reported safe after what the FBI described as an apparent assassination attempt outside his West Palm Beach golf course. As reported by Reuters.
Secret Service agents confronted an armed individual hiding in bushes along the golf course property line. During a press conference Sunday afternoon, law enforcement officials confirmed that agents fired at least four rounds. Despite the dramatic events, the initial market response was muted.
Market Reacts With Caution
At the time of reporting, the S&P 500 e-minis dipped slightly, down 0.04%, while the U.S. Dollar Index, a measure of the dollar’s strength against six major currencies, edged down 0.03% to 101.07. The cryptocurrency market also felt the effects, with Bitcoin declining 0.7% to $59,445. Given Trump’s stance as a pro-cryptocurrency candidate, any developments surrounding him could have ripple effects in that market.
Analysts Warn of Potential Volatility
While the immediate market reaction appeared calm, analysts were quick to caution about potential turbulence ahead. “Foreign exchange rates could experience turbulence in the coming hours as news of a second assassination attempt lands amid thin trading volumes,” stated Karl Schamotta, chief market strategist at Corpay in Toronto.
A Return to the “Trump Trade”?
Trump has positioned himself as a major factor in various market segments, known colloquially as the “Trump trade.” Assets and sectors expected to benefit from a second Trump term rallied earlier this year after he survived an assassination attempt in Pennsylvania on July 13. However, the “Trump trade” faced pressure last week following a closely watched debate between Trump and Vice President Kamala Harris, with betting markets suggesting an increased likelihood of a Harris victory in the upcoming November election.
Michael Brown, senior research strategist at online broker Pepperstone in London, weighed in on the situation, noting, “Perhaps we may see some look to get back into the ‘Trump Trade’ if this sees Trump receive a boost in the polls like we saw after the earlier assassination attempt—boosting both equities and the dollar.”
Federal Open Market Committee (FOMC) Upcoming Meeting Looms Large
However, Brown expressed caution, emphasizing the impact of other upcoming events on market stability. “With the FOMC looming large on Wednesday, conviction among market participants will likely be lacking until we hear from Powell & Co,” he added.
Eyes on the Federal Reserve
All eyes now turn to the Federal Reserve, whose upcoming Sept. 17-18 meeting looms large over the market. Investors and analysts remain on edge, awaiting signals on how much the U.S. central bank might cut interest rates and the pace of future reductions.
“The dollar could yet climb on a modest recovery in the ‘Trump trade,’ but any effect should be relatively modest in scale,” said Corpay’s Schamotta, summarizing the mixed sentiment currently prevailing in the markets.
Uncertain Week Ahead for Markets
As Monday’s trading session approaches, market participants are bracing for what could be a volatile week ahead, influenced by not just the political landscape but also crucial economic policy decisions.
This report was compiled using information from Reuters.