What a Trump presidency could mean for the dollar and the stock market
CNN
The almighty dollar is back.
A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. You can’t keep the dollar down. The US dollar has had a remarkably strong summer, and while its rise has eased in the days following a left-wing resurgence in France’s elections, it’s still on a gangbusters ride. The greenback is about 13% stronger (measured through the the Fed’s advanced foreign economy dollar index) than it was in 2021, before the Federal Reserve began raising interest rates. That’s great news for American tourists planning trips abroad this year (and they are, in record numbers), but not as good for the large, multi-national companies that make up the majority of the S&P 500. What’s happening: The most recent bump in the dollar is politically charged, but, at its core, it all comes down to the Fed. After showing a dead heat for most of the year, recent presidential polling has shifted in favor of former President Donald Trump over President Joe Biden. Should Trump’s advantage now turn into a win in November, that would likely mean the preservation or expansion of tax cuts and increased tariffs. During last month’s presidential debates, Trump reiterated his desire to impose a 10% tariff on all imports, which would likely increase inflation and cast doubt on interest rate cuts.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.