[Good Morning Market] US Stocks Rise Together Despite Trump Shooting... "Focus on Election Beneficiary Stocks"

The three major U.S. indices all rose despite news of former President Donald Trump being shot, leading to strength in related stocks. On the 16th, it was advised to pay attention to stocks benefiting from former President Trump in the domestic market as well.

[Image source=Yonhap News]

On the 15th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at a record high of 40,211.72, up 210.82 points (0.53%) from the previous trading day. The S&P 500, focused on large-cap stocks, rose 15.87 points (0.28%) to 5,631.22, and the tech-heavy Nasdaq index finished trading at 18,472.57, up 74.12 points (0.4%).

The market is anticipating a possible election victory for former President Trump. On the 13th of this month, during an outdoor campaign rally in Butler, Pennsylvania, an assassin's bullet grazed his right ear, causing injury. This has led to speculation that Trump's support base has further consolidated, smoothing his path to the presidency.

By stock, those expected to benefit from Trump's election showed gains. TMTG, which operates Truth Social, surged 31.37% on prospects of an increased chance of Trump's election. Additionally, Humana and UnitedHealth Group rose 0.52% and 0.75%, respectively, as insurance companies are expected to face less cost pressure under a Republican administration. Tesla, whose CEO Elon Musk has expressed support for Trump, rose 1.78%. Goldman Sachs also rose 2.57% following better-than-expected Q2 earnings.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The Dow closed at a record high, supported by strength in the energy and financial sectors. This is due to the ‘Trump trade’ phenomenon, where sectors expected to benefit from policies gain strength as Trump's chances of winning this year's election increase following the shooting incident."

The MSCI Korea Index ETF fell 1.5%, and the MSCI Emerging Markets Index ETF dropped 1.1%. Eurex KOSPI 200 futures declined 0.4%. Researcher Kim said, "The 'twin engines' of AI smartphones and semiconductors are expected to drive earnings in the second half. Although the exchange rate level is a burden, it is expected to be a positive factor for export companies' earnings."

Along with this, as the possibility of former President Trump's election increases, there is advice to pay attention to related beneficiary stocks.

Dongwon Kim, a researcher at KB Securities, explained, "Expansion of IT-centered manufacturing investment is expected to benefit IT, electric equipment, and nuclear power industries due to increased infrastructure investment for the revival of domestic industries. The reduction of support from the North Atlantic Treaty Organization (NATO) could lead European countries to increase defense spending to build their own defense systems, benefiting the defense industry." He added, "If the dollar remains strong and the won-dollar exchange rate stays high in the second half, it is expected to have a positive impact on sales growth in export-oriented sectors, including IT."