Janice R. Andrews
The premarket trade on Monday saw a sharp increase in stocks associated with Donald Trump, including his media company and a number of cryptocurrency stocks. This upsurge came after the former president was shot in the ear during a Trump rally in Pennsylvania. Amazingly, Trump seemed undaunted by the incident, fist-pumping shortly after the attack, and his campaign promptly reassured the public that he was alright.
Trump Technology & Media Group Records Large Gains
The Trump Media & Technology Group (TMTG) saw its shares (DJTWW, DJT) surge by 67%, making it the most noteworthy mover. TMTG stock has increased by 75% this year for Trump, who owns a majority share in the business, which was valued at about $3.8 billion as of June 25 according to LSEG statistics. Retail traders who are placing bets on Trump’s probable win over Democratic President Joe Biden in their rematch on November 5 are mostly responsible for this surge.
An important hub for investors who support Trump’s reelection is TMTG, the parent business of the social media network Truth Social. The forthcoming presidential election’s high stakes and volatility are reflected in the company’s stock performance.
Bitcoin and Crypto Stock Rally
Cryptocurrency stocks saw a sharp increase as well, mirroring Bitcoin’s ascent to a two-week peak after the Trump attack. With additions ranging from 6% to 7%, Coinbase Global, Riot Platforms Inc., and Marathon Digital also saw noteworthy advances.
According to Dan Coatsworth, an investment analyst at AJ Bell, “Trump is perceived as pro-crypto, and the theory that he is now in a stronger position in the race for the White House has fired up traders looking for assets to benefit if he gets back into power.” The markets, Coatsworth continued, were unusually quiet in spite of the attempted assassination.
Deep Market Responses
A muted response was seen by the US market as a whole, with S&P 500 futures trading 0.4% higher. Manufacturer Smith & Wesson Brands saw a 2.7% increase in stock, which is consistent with a rising trend in gun ownership following major shootings as a result of concerns about tighter gun laws.
The stocks of prison operators Geo Group and CoreCivic increased by almost 7% apiece. Given that Trump has vowed to crack down on illegal immigration, which could increase demand for detention facilities, both businesses stand to gain from his presidency.
Additional Gains in Trump-Related Stocks
Phunware, a software firm, had a 50% increase in its shares after being contracted by Trump’s 2020 presidential reelection campaign to create a mobile application. In the meantime, conservative-friendly video-sharing website Rumble saw an increase in its stock value of 18%.
Unquestionably, the shooting incident has increased market volatility, especially in stocks associated with Trump and his views. Investors are keeping a close eye on developments as the election race heats up and placing bets on possible results and how they might affect different industries.
The event at the rally in Pennsylvania serves as a stark reminder of how unstable the current political environment is and how much of an impact it has on the financial markets. In the run-up to the November election, investors continue to be on the lookout and ready to modify their plans in response to fresh facts.
