Dow closes at record high; weakness in luxury stocks hits European stocks

NEW YORK, United States — The Dow Jones Industrial Average closed at a record high on Monday as markets weighed the impact of the attempted assassination of Donald Trump, while European stocks came under pressure from weakness in the luxury goods sector and disappointing Chinese economic data.

The blue-chip index rose 0.5% to close at 40,211.72, its first record since mid-May.

Major U.S. stock indexes were in positive territory throughout the session as rumors of an assassination boosted Trump’s electoral prospects.

read: China reports 4.7% growth last quarter; Asian stocks mixed

Trump was shot in the ear during a campaign event in Wisconsin ahead of the Republican National Convention on Saturday, but the injury was not serious.

The former president announced on Monday Ohio Senator J.D. Vance will be his vice presidential candidate.

“Relevant to the markets, many viewed former President Trump as a more market-friendly candidate, in part because of his push for deregulation and lower corporate tax rates,” O’Hare said.

“Others, however, worry that his push for higher tariffs could also lead to higher inflation.”

The Dow’s record came as Federal Reserve Chairman Jerome Powell expressed confidence that inflation is retreating, reiterating a stance that boosted markets last week.

Strong results from Goldman Sachs and BlackRock also boosted sentiment on Wall Street.

Earlier, the Paris Stock Exchange fell 1.2% as luxury stocks underperformed, with LVMH, Hermès and Kering all falling.

Burberry shares fell more than 16% in London after it announced that Chief Executive Jonathan Akeroyd would leave the company immediately following “disappointing” results.

In another heavy blow, Swatch Group reported a plunge in profits due to a crisis in China’s luxury goods market and warned that sales in that key market would likely remain difficult this year, sending its shares down more than 9%.

Official statistics show that China’s economy grew 4.7% in the second quarter of this year, the lowest growth rate since early 2023, when China had just emerged from the “zero COVID” policy that hampered economic growth.

The data were released on the same day that China’s ruling Communist Party held a major economic meeting, the Third Plenary Session of the 18th Central Committee, chaired by President Xi Jinping.

The world’s second-largest economy is facing problems such as a real estate debt crisis, weak consumption and an aging population.

Analysts hope the meeting will bring much-needed support to the economy.

Key data around 2030 GMT

New York – Dow Jones: Up 0.5% to 40,211.72 (close)

New York – S&P 500: Up 0.3% to 5,631.22 (close)

New York – Nasdaq Composite: Up 0.4% to 18,472.57 (close)

London – FTSE 100: Down 0.9% at 8,182.96 (close)

Paris – CAC 40: down 1.2% to 7,632.71 points (close)

Frankfurt – DAX: down 0.8% to 18,590.89 (close)

Euro Stoxx 50: Down 1.2% at 4,983.11 (close)

Hong Kong – Hang Seng Index: Down 1.5% to 18,015.94 (close)

Shanghai Composite Index: Up 0.1% to 2,974.01 points (close)

Tokyo – Nikkei 225: Closed for holiday

USD/JPY: Up to 158.09 yen from 157.83 yen on Friday

EUR/USD: Down to $1.0902 from $1.0907

GBP/USD: Down from $1.2988 to $1.2970

EUR/GBP: Up to 84.03 pence from 83.97 pence

Brent North Sea crude: Down 0.2% to $84.85 a barrel

West Texas Intermediate crude: Down 0.4% to $81.91 a barrel