FX168 Financial News Agency (North America) - Trump Media Company's stock price soared in early trading on Monday, July 15th, as the weekend's attempted assassination of the former president increased attention to the so-called "Trump trade". #US Election##2024 Macro Outlook##2024 Investment Strategy#
Trump Media and Technology Group Corp. (Trump Media & Technology Group Corp.), listed under the DJT stock code, rose about 50% in early trading after its debut earlier this year. As of the time of publication, it is now at 41.80, up 35.32%.
Other stocks, such as private prison companies and crypto miners, which are expected to benefit from Republican victories, also rose in early trading.
(Image source: finance.yahoo)
"Everything is now about the Trump trade," said Matthew Tuttle, CEO of Tuttle Capital Management. He added that the response to Trump Media's stock was expected because investors typically viewed the stock as a "direct Trump trade".
According to PredictIt's data, the chance of Republican candidate Trump winning a second term has increased since the shooting at the rally in Pennsylvania on Saturday.
Since its debut in March, the stock price of Trump Media has been highly volatile, with traders reacting to changes in Trump's and current President Joe Biden's chances of winning the election. The former president holds the majority of the company's shares, which operates the social media platform Truth Social, which was launched after Trump was banned from main websites following the 2021 Capitol riots.
Conservative video network company Rumble Inc. rose about 10% in early trading.
(Image source: finance.yahoo)
Looking more broadly, the increased likelihood of candidate victories has boosted industries believed to benefit from a return to Trump. Gun-related stocks rose, with Smith & Wesson Brands Inc. up more than 6% and Sturm Ruger & Company Inc. up about 5%. Private prison companies GEO Group Inc. and CoreCivic Inc. both rose more than 7%.
Stocks related to cryptocurrencies, such as Coinbase Global Inc. and miner Marathon Digital Holdings Inc., also rose on the back of the rise in Bitcoin. Health insurance companies, seen as potential beneficiaries of reduced regulation under the Trump government, saw their stock prices rise: UnitedHealth Group Inc. rose 2.1% and Humana Inc. rose 2.5%. Tesla Inc. rose about 4% after Elon Musk supported Trump.
Meanwhile, solar energy companies fell as Democrats are seen as more supportive of the industry, with Enphase Energy Inc. and First Solar Inc. both down about 4%.
The broader market rose at the beginning of this week, with S&P 500 futures up about 0.4%.
"Although the expectation of Trump's victory in November pushed futures higher this morning, this event is unlikely to have a lasting impact on the market," said Tom Essaye, President and Founder of Sevens Report.