The Dow Jones Industrial Average advanced on Monday as investors bet the unsuccessful assassination attempt on former President Donald Trump will lead to big gains for the Republican presidential candidate and the GOP at the polls in November.

Friendlier fiscal policies ahead were seen as further spurring a broadening out of the bull market that started to take shape last week. Small-cap shares and banks climbed on Monday.

The blue-chip Dow jumped 210.82 points, or 0.53%, to 40,211.72. The S&P 500 added 0.28% to 5,631.22. Both touched new intraday highs in the session, while the former also saw a record close. The Nasdaq Composite rose 0.4% to 18,472.57.

"The good news is that former President Trump was not injured more than the ear, that he was not killed," said Sam Stovall, chief investment strategist at CFRA Research, on CNBC's "Worldwide Exchange." "As a result, I think the market will continue on its momentum ways."

The Republican National Convention commenced Monday in Milwaukee, Wisconsin, with Trump leading President Joe Biden in national polls.

Humana and UnitedHealth Group each rose in the session. The insurers could benefit from fewer cost pressures coming from a Republican administration.

The Russell 2000 gained 1.8%, touching its highest level since 2022 and recording a fourth straight positive day. Goldman Sachs said a second Trump term could help small caps outperform, citing their strong record after his victory in 2016.

Goldman Sachs shares added 2.6% after posting earnings that exceeded analysts' expectations. The SPDR S&P Bank ETF (KBE) and SPDR S&P Regional Banking ETF (KRE) both added more than 2%.

Goldman is one of the more than 40 S&P 500 companies reporting second-quarter earnings this week as the new season ramps up. This list also includes household names such as Bank of America, United Airlines and Netflix.

Beyond earnings, investors parsed comments from Federal Reserve Chair Jerome Powell, who said the central bank wouldn't wait until inflation was at its goal of 2% before lowering interest rates. He also said a hard landing scenario was unlikely for the economy.

"We are getting very close to the point of the Fed … seeing the data that they need to see to be comfortable cutting rates," said Bill Merz, head of capital market research at U.S. Bank Asset Management. "That's what is the first and foremost thing in the psyche of the market."

Stocks close higher

The three major averages finished Monday's session higher.

The Dow added more than 200 points, or 0.5%. The S&P 500 and Nasdaq Composite climbed 0.3% and 0.4%, respectively.

— Alex Harring

BlackRock's Rick Rieder says the Fed is setting up for a September cut

Rick Rieder, BlackRock chief investment officer of global fixed income, said easing inflation data made the case for a rate cut in the coming months.

"We are at a place that is much more like 2019, much, much closer to normalcy," Rieder said on CNBC's "Closing Bell" on Monday.

While not ruling out the possibility of a rate cut this month, Rieder said the Federals Reserve is setting up its first reduction in September.

"Will they cut in July this month? I think the odds are low. It's not impossible. You've gotten some data that would allow you to do it, I would do it," he said. "I think they'll set up for a September cut."

The consumer price index, a broad measure of costs for goods and services, declined 0.1% in June from May, putting the 12-month rate at 3%, around its lowest level in more than three years.

— Yun Li

JPMorgan to reflect ‘goliath is winning’ theme even if frustrating, Mike Mayo says

Wells Fargo is staying bullish on JPMorgan following its second-quarter earnings beat.

"JPM should reflect our 'Goliath Is Winning' theme, as greater offense is expected to play with est. on-going market share gains and improving operating efficiencies," top bank analyst Mike Mayo said in a Monday note.

Mayo also said it has "excelled at both offense and defense over the past decade in which it has been gaining market share in all major business lines while optimizing its businesses, showing consistent earnings relative to other global banks, and creating a 'fortress balance sheet.'"

However, Mayo added that what is frustrating is management continuing to "talk down" earnings, returns and the stock even though JPMorgan is showing "best-in-class" results.

Shares of the stock rose more than 2.5% during midday trading Monday and are up more than 23% year to date.

— Sean Conlon

Second-quarter earnings are a 'show me' moment for Wall Street, Strategas says

While the second-quarter earnings season serves as a "show me" moment for markets that have continued to reach all-time highs, the run up has ""been nothing short of breath-taking" thus far, according to Strategas chief investment strategist Jason De Sena Trennert.

"Investors only seem to care about valuations when the 10-year breaches 4.5%," De Sena Trennert wrote on Monday. "With the bond market currently quiescent, we believe investors will be looking closely at 2Q earnings to determine whether the market will continue its upward momentum or take a breather to consolidate its gains."

— Brian Evans

Look for a 'pretty big rotation' this earnings season, Deutsche Bank economist says

The rotation trade could be key to this earnings season, according to Binky Chadha, chief U.S. equity and global strategist at Deutsche Bank.

"Going into earnings season, we think earnings will be in the aggregate pretty good. So we're actually looking for overall S&P 500 EPS growth to pick up from 11% to 13%," Chadha told CNBC's "Money Movers" on Monday. "But one level below is basically what we're looking for, is a pretty big rotation in earnings growth."

In fact, Chadha anticipates equity performance can start to broaden out in the coming weeks as earnings growth expectations for megacap tech and the rest of the market start to narrow. The strategist anticipates the earnings growth in megacap tech stocks will fall to 30% from 38% in the second quarter, while the rest of the S&P 500 could post earnings growth of 7.5%, up from 2.5% in the first quarter.

"I'd say, you know, [Thursday's market] gives you a flavor of what's likely to come because they're not necessarily at that same speed. It's just a rotation. And I mean, if you look at equity positioning, it's tied to, as you would expect, earnings growth. And we're looking for growth to slow on one side, pick up on the other," Chadha said. "So rotation would be you know, pretty natural. It's the way I would put it."

The strategist is optimistic on financials, consumer discretionary and materials.

— Sarah Min

Stocks remain on track for winning session

Stocks remain poised for gains as the final trading hour kicked off.

The Dow added more than 280 points, or 0.7%, shortly after 3 p.m. ET. The S&P 500 and Nasdaq Composite traded higher by 0.4% and 0.5%, respectively.

— Alex Harring

Watch Powell's response to Trump assassination attempt

Federal Reserve Chair Jerome Powell said Saturday was a "sad day for our country" following the assassination attempt of former President Donald Trump.

Powell's comments came during a Monday discussion in Washington, D.C. See the full clip below.

— Alex Harring, Anuz Thapa

Energy outperforms Monday

The energy sector jumped more than 2% Monday, making it the best-performing sector in the S&P 500.

Shares of APA, Halliburton, Baker Hughes and SLB all rose by more than 4%.

The financial sector was the second strongest sector for the day, with gains of 1.5%. Discover Financial Services, Capital One Financial Corp and Synchrony Financial advanced 4% each.

— Hakyung Kim

Morgan Stanley bullish large caps and growth stocks within small caps

With interest rates looking likely to come down soon, Morgan Stanley believes quality and growth equities are due to lead the market.

Strategist Michael Wilson wrote in a Monday note that while he maintains his preference for large-cap stocks, he is long growth over value within the small-caps category.

"Growth has recently started to outperform value within small caps as rates have come down. In our view, this is supportive of the idea that longer duration small caps that are more secular growth-oriented and more sensitive to cost of capital have benefitted on a relative basis as yields have come down," the strategist wrote.

Wilson believes this trade still has more relative upside to go, as earnings revisions and a rate-cutting cycle have traditionally been more supportive of small-cap growth.

— Lisa Kailai Han

Firearms stocks rise after Trump assassination attempt

Shares of firearms manufacturers were trading higher on Monday after former President Donald Trump survived an assassination attempt over the weekend.

Shares of Sturm, Ruger & Company gained 7% by midday, while Smith & Wesson Brands stock was trading more than 10% higher. American Outdoor Brands, which was spun out from Smith & Wesson to focus on sporting goods and outdoor gear, also added more than 1%.

— Lisa Kailai Han

Powell says Fed won't wait until inflation hits 2% to start cutting

Federal Reserve Chair Jerome Powell indicated on Monday that the Fed would not wait until inflation is down to the 2% goal to begin lowering interest rates.

"The implication of that is that if you wait until inflation gets all the way down to 2%, you've probably waited too long, because the tightening that you're doing, or the level of tightness that you have, is still having effects which will probably drive inflation below 2%," Powell said at an event in Washington, D.C.

Powell also said a hard-landing scenario was unlikely for the economy.

— Alex Harring, Jesse Pound

Regional bank shares rally for 6 days in a row

Regional banks have been on a tear as of late on the prospect of lower interest rates.

The SPDR S&P Regional Banking ETF climbed another 2% on Monday, rallying for six days in a row and hitting its highest level since December. The advance is led by Truist, M&T Bank, Huntington, Regions Financial and Citizens.

These smaller lenders could benefit from lower funding costs and more active lending activities as rates are expected to be lower later this year.

— Yun Li, Gina Francolla

Bitcoin rallies more than $4,000

Bitcoin rallied more than $4,000 Monday after the attempted assassination of Donald Trump over the weekend raised the odds the crypto-friendly candidate will win the 2024 U.S. presidential election.

The price of the cryptocurrency last rose to $62,826.80, or more than 7% above where it closed Friday at around $58,600. On Monday, it was last higher by more than 4%.

Those gains come as betting markets suggest a higher likelihood of a Trump victory. PredictIt last showed a 67% chance of Trump beating out Biden in the 2024 election, up from 60% on Friday.

In March, Bitcoin hit a record of more than $73,000, but has since pulled back from those highs. Last week, it was retesting a key support level at $57,000.

— Sarah Min

Small caps hit highest level since 2022

Small-cap stocks jumped to a multiyear high Monday, in a sign that the tech-led rally is broadening out.

The Russell 2000 benchmark rose 2% Monday to hit its highest level since January 2022, led by strong gains in Humacyte, Cipher Mining, Aurora Innovation and Upstart Holdings.

The benchmark is still 10.8% below its intraday all-time high reached on Nov. 8, 2021.

— Yun Li, Gina Francolla

China stocks underperform

China large-cap stocks underperformed Monday after Beijing reported second-quarter GDP growth of 4.7% that missed expectations.

The iShares China Large-Cap ETF (FXI) fell 1.6% in midday trading. Internet stocks Baidu and JD.com slid more than 4% each. Similarly, electric vehicle maker Li Auto fell more than 4%.

— Sarah Min

Dow, S&P 500 clinch fresh intraday records

The Dow and S&P 500 both notched new intraday highs amid Monday's rally.

At its highest level on Monday, the Dow added more than 300 points to 40,319.91. The S&P 500 rose around 0.9% at one point to 5,665.19.

— Alex Harring

Trump Media shares soar post-assassination attempt

Shares of Trump Media & Technology surged more than 33% in morning trading on Monday following the attempted assassination of former President Donald Trump over the weekend.

The stock is on pace for its best day since March 25, when it advanced 35.22%. It is up more than 135% this year.

The former president was rushed off stage on Saturday after he says he was grazed by a bullet at a Pennsylvania rally. Trump "will be fine," according to his spokesman.

— Sean Conlon, Gina Francolla

Solar ETF on pace for worst day since February

Solar stocks dropped on Monday, with the Invesco Solar ETF (TAN) last down nearly 6% and on pace for its worst day since February.

The move in solar and clean energy stocks comes on the heels of the attempted assassination of Donald Trump over the weekend, and as the odds of the former president winning the November election — and a potential Republican sweep — rise. A Trump administration could undo some of President Joe Biden's climate policies.

Sunrun was the most significant laggard in the index, shedding 14%. SolarEdge Technologies dropped 13% and announced it plans to cut 400 jobs. Sunnova Energy sank 11%, while First Solar, Enphase Energy and Canadian Solar fell at least 5% each.

The solar fund is also headed for its first negative day in six.

— Samantha Subin, Gina Francolla

UBS says Trump assassination attempt complicates election

While the attempted assassination of former U.S. President Donald Trump "adds a new layer of complexity" to what has already been a rocky election season, UBS does not advise traders to necessarily make changes in response to the dramatic events.

"We have said that investors should not make major portfolio swings in response to campaign developments or in anticipation of any particular election result, and that applies in this case too," global wealth management chief investment officer Mark Haefele wrote in a Monday note.

Nonetheless, if investors are looking to reduce exposure to political uncertainty and market volatility, he underscored consumer discretionary stocks as being exposed to risk of higher import tariffs, which has been a key election issue.

"To manage potential election-related volatility, investors can use defensive structured investment strategies, such as capital preservation or yield-generating approaches for election-sensitive stocks or cyclical sectors like energy, industrials, and financials," Haefele added.

— Hakyung Kim

Stocks open higher

The three major indexes kicked off Monday's trading day in the green.

The Dow traded more than 200 points higher shortly after 9:30 a.m. ET. Within the first few minutes of trading, the blue-chip index had notched a fresh all-time intraday record, eclipsing the one set on Friday.

The S&P 500 and Nasdaq Composite added 0.4% and 0.5%, respectively.

— Alex Harring

Apple gains 2% on India sales report, Wall Street price hikes

Apple shares gained 2% before the bell following a slew of positive market headlines.

Loop Capital upgraded the iPhone maker to a buy from hold and lifted its price target to $300, citing its artificial intelligence potential. The firm said the company is poised to become the consumer's "AI base camp of choice." Morgan Stanley also named the stock a top pick, calling Apple Intelligence a "clear catalyst boost" for iPhone and iPad shipments and upping its price target.

Bloomberg News reported that the company's India sales jumped 33% to a record $8 billion for the year ending in March, citing someone familiar with the matter.

— Samantha Subin

Stocks that can benefit from Trump presidency advance

Several stocks that can be helped by Donald Trump regaining the presidency took a leg up in Monday's premarket.

Truth Social parent Trump Media & Technology surged nearly 50% before the bell after the former president survived an assassination attempt over the weekend.

Humana and UnitedHealth Group each gained about 2%. The insurers can benefit from less cost pressures expected from a Republican administration.

Halliburton added more than 1% amid optimism about what a Republican in the top U.S. office can mean for energy drilling policy.

— Alex Harring

Macy's plunges after retailer says buyout talks with Arkhouse and Brigade terminated

Macy's shares tumbled more than 12% after announcing that buyout talks with Arkhouse and Brigade ended.

The retailer said Monday that the proposal from the activist group "lacks certainty of financing and does not deliver compelling value." Macy's shares have dropped more than 5% in 2024.

— Alex Harring, Rohan Goswami

BlackRock shares rise after latest earnings results

BlackRock shares gained 1.2% in premarket trading after the investment firm's latest quarterly profit exceeded expectations.

The asset manager posted second-quarter adjusted earnings of $10.36 per share, exceeding the FactSet consensus estimate of $9.96 in earnings per share. However, revenue of $4.81 billion came in below the $4.85 billion forecast.

— Sarah Min

Trump Media & Technology, Apple among Monday's biggest premarket movers

These are some of the stocks making the most significant moves before the bell:

• Trump Media & Technology — Shares of the Truth Social parent popped more than 50% following the attempted assassination of former President Donald Trump on Saturday. Some have argued that the attempt could boost the odds of a Trump victory in the November election.
• Apple — Apple shares gained 2%. Loop Capital upgraded the technology giant to a buy rating, saying that its upcoming and future artificial intelligence integrations create an opportunity for the iPhone maker to become the generative AI "base camp" of choice. Bloomberg News also reported that the company's sales in India grew 33% year over year through March to a record $8 billion.
• Super Micro Computer — Shares of Super Micro Computer, which makes graphics processing unit servers, rose 3.6% on the announcement that the company will replace pharmacy chain Walgreens Boots Alliance in the Nasdaq 100 index before the start of trading on July 22.

Read the full list of stocks on the move here.

— Samantha Subin

Attempted Trump assassination could lead to market rally on Monday, Stifel says

Saturday's attempted assassination of former President Donald Trump will likely push stocks higher Monday and lead to a "risk-on trade," according to Stifel.

"While political uncertainty might lead to a risk-off trade, we think investors will agree with our assessment that the attempted assassination of Donald Trump increases his odds of winning the presidential election," chief Washington policy strategist Brian Gardner said in a Sunday note. "This could lead to a rally in the equity markets on Monday."

Gardner noted that the scale of political boost Trump will receive remains uncertain and that Saturday's event will also freeze the Democratic Party's efforts to replace President Joe Biden as their party's nominee, both factors that could also shift markets higher.

— Pia Singh

Goldman Sachs shares pop 2% after second-quarter earnings beat

Shares of Goldman Sachs popped as much as 2% just after the bank reported it had beaten its second-quarter earnings and revenue estimates Monday morning. The stock was last trading less than 1% higher.

The bank posted earnings per share of $8.62, while analysts polled by LSEG had only expected $8.34. Goldman's revenue of $12.73 billion was also higher than consensus forecasts of $12.46 billion. The bank also reported better-than-expected fixed income trading.

— Lisa Kailai Han

Trump Media jumps after assassination attempt

Trump Media & Technology shares soared nearly 50% in Monday premarket trading after the assassination attempt of former President Donald Trump over the weekend.

Trump says he was grazed by a bullet during a Pennsylvania rally on Saturday and later released from the hospital. The gunman and one attendee are dead, while two additional attendees are in critical but stable condition.

Trump Media is the parent of social media platform Truth Social. Its ticker, DJT, is also Donald Trump's initials.

— Alex Harring

Stock futures increase gains

Stock futures increased their overnight gains with Dow Jones Industrial average futures last up about 200 points. Tesla and Humana were early market leaders.

— John Melloy

European markets open lower

European stocks started the week lower as global markets assess the effect of an assassination attempt on former U.S. President Donald Trump at a rally over the weekend.

The pan-European Stoxx 600 was down 0.45% in early deals and as all sectors and major bourses fell into the red.

The U.K.'s FTSE index opened 0.74% lower at 8,193, Germany's DAX was down 0.34% at 18,685, France's CAC 40 was down 0.94% at 7,651 and Italy's FTSE MIB was down 0.52% at 34,401.

— Karen Gilchrist

Google in talks to acquire cyber startup Wiz for $23 billion, WSJ reports

Google is in advanced talks to acquire cybersecurity firm Wiz for $23 billion, The Wall Street Journal reported Sunday, citing people familiar with the matter.

The people familiar told the Journal that a deal could come soon. If completed, the deal would be Google's largest ever acquisition.

Founded in 2020, Wiz has grown at a rapid pace under CEO Assaf Rappaport. It had been eyeing an initial public offering as recently as May, when the company achieved a valuation of $12 billion.

— Yun Li