What you need to know today

Record high
The Dow Jones Industrial Average closed at an all-time high after former President Donald Trump survived an assassination attempt.

The S&P 500 hit an intraday high and Nasdaq Composite rose 0.4%.

The prospect of Trump’s reelection is seen as a positive for small caps, the Russell 2000 gained 1.8%, touching its highest level since 2022 and recording a fourth straight positive day.

The yield on the 10-year Treasury edged up as investors analyzed comments from Federal Reserve Chair Jerome Powell. U.S. oil prices declined.

Trump’s VP pick
Donald Trump has chosen Senator JD Vance of Ohio as his vice presidential running mate for the 2024 election. Trump announced his decision on Truth Social, praising Vance as the best-suited candidate after considering several others.

The Biden campaign quickly criticized the choice, accusing Vance of enabling Trump’s “extreme MAGA agenda” and claiming both would prioritize tax cuts for the wealthy while raising taxes on the middle class. They also suggested that billionaires and corporations favor Vance, anticipating policies that would benefit them at the expense of the average American.

Fed may not wait
Powell said the central bank will not wait until inflation reaches its 2% target to cut interest rates. Due to the delayed effects of monetary policy, “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.

Bitcoin ‘digital gold’
BlackRock CEO Larry Fink, initially a bitcoin skeptic, now sees the cryptocurrency as “digital gold” and a potential safe haven for investors concerned about political instability and rising government debt. Fink believes bitcoin can offer uncorrelated returns and act as a hedge against currency debasement caused by excessive deficits. “I believe it is an instrument that you invest in when you’re more frightened though. It is an instrument for when you believe countries are debasing their currencies by excess deficits, and some countries are,” Fink told CNBC’s “Squawk on the Street.”

Goldman tops estimates
Goldman Sachs exceeded profit and revenue expectations for the second quarter, driven by stronger-than-expected fixed-income results and lower loan loss provisions. But Goldman’s well-known investment banking business disappointed compared to rivals; investment banking fees rose 21% compared with over 50% jump for both JPMorgan and Citigroup. Goldman CFO Denis Coleman said the bank was still No. 1 in terms of market share for mergers and the comparison had to do with better relative performance a year ago. Expectations have been set high for Goldman Sachs, with Wall Street businesses in the midst of a rebound after a dismal 2023. Goldman’s shares rose 2%