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Wall Street muted to Trump’s conviction so far, but traders say need to watch for volatility – Moneycontrol

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News reports suggest it is almost that Donald Trump will appeal against the verdict, and called the trial ‘rigged’

Wall Street has so far not shown any sharp reaction to former US President Donald Trump’s conviction by a jury, and US index futures are trading mildly lower, partly in anticipation of a key personal consumption number due later this evening, and corpoarte earnings.

You can track the US index futures on Moneycontrol right here.

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One view on the Street is that a guilty verdict was somewhat priced in. “I think market expectations for a guilty verdict were somewhat priced into markets. The bigger impact to markets could be if this guilty verdict begins to turn the momentum away from Trump to Biden”, Bloomberg quoted Paresh Upadhyaya, director of fixed income and currency strategy at Amundi, US.

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There is no precedence for US stock markets to follow in case of such a conviction and the subsequent impact on asset prices. Ed Yardeni, founder of Yardeni Research told Bloomberg that the political climate after the Trump verdict “could increase volatility in the stock market”. The impact on US Dollar too would be closely tracked, if any, given Trump’s strong position on tariff wars and his geopolitical view.

Some news reports suggest it is almost that Donald Trump will appeal against the verdict, and has called the trial ‘rigged’. The case is far from over, Trump told reporters after the conviction, adding that he will ‘fight for our constitution’. Trump added, “the real verdict is going to be on November 5 by the people”, he said.

A poll published on PBS.Org ahead of the conviction had suggested that the jury’s decision is unlikely to have any major impact on US election later this year. “Overall, 67 percent of voters said a conviction would make no difference for them in November”, the report said. Infact, the PBS reported that as many as 25 percent Republicans would be ‘even more likely to vote for Trump’ if the jury convicts.

The maximum punishment that Trump could get in this case is a four-year jail term, said The Daily Telegraph, while it also cited experts hinting at a possible non-custodial sentence. Trump’s lawyers can appeal against the conviction ahead of the scheduled sentencing on July 11.

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