Donald Trump’s media enterprise experienced a remarkable surge on Wall Street following an attempted assassination that invigorated the “Trump trade.”
Shares of Trump Media & Technology Group, the parent company of Truth Social, skyrocketed by 37% at the opening bell, maintaining most of these gains to close the day up 31.8% at $40.78, a rise of $9.83.
Launched in early 2022, Truth Social was created after Trump faced bans from platforms such as Facebook and Twitter post the January 6 Capitol attack. With Trump holding a majority stake, this surge translates to a paper profit of approximately $1.3 billion for the former president.
The likelihood of Trump winning the November election has reportedly increased following the shooting incident at a rally in Pennsylvania, as reflected in current betting odds. Trump confirmed on Truth Social that he was hit in his right ear.
This optimistic outlook also propelled Bitcoin to a two-week high of $63,022, while Ether rose 3.7% to $3,379. Trump, a vocal advocate for the cryptocurrency sector against Democrat-led regulations, is slated to speak at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27.
Overall market indices also saw upward movement, with the S&P 500 closing up 0.3%, the Nasdaq rising by 0.4%, and the Dow Jones Industrial Average adding 210.82 points, or 0.5%, reaching a record 40,211.72.
Prison stocks saw significant gains, anticipated to benefit from Trump’s proposed crackdown on illegal immigration, which would increase demand for detention centres. Companies with Republican ties, such as Phunware, the developer of Trump’s 2020 campaign app, and Rumble, a conservative-favoured video platform, also saw notable increases. Gun manufacturers and ammunition suppliers followed suit.
Conversely, green energy stocks declined amid expectations of a potential reversal of Biden administration climate policies under a Trump administration.
Prominent business figures, including Tesla CEO Elon Musk and hedge fund manager Bill Ackman, publicly supported Trump for the presidency following the incident. Polls indicate that many US voters perceive Trump as the superior candidate for economic matters.
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Trump media company shares soar after attempted assassination