The Dow's surge is a calculated response to political turmoil

Financial markets often respond to chaos in unexpected ways. The stock market rallied after a US presidential contender was shot at, but this doesn’t necessarily indicate a political impact on companies’ bottom lines. While some traders believe the incident could improve the contender’s chances of winning, others doubled down on so-called Trump trades. Volatile stocks like Trump Media and Bitcoin benefited, as did companies like Tesla and gun makers. However, sectors like solar energy and cannabis saw a decline. Bond traders also indicated a slight shift in expectations for a second Trump presidency, as Treasury bond yields rose.