Trump Media, Crypto Stocks Surge After Shooting Incident
Trump Media & Technology Group (NASDAQ:DJTWW) and various crypto stocks experienced a significant surge on Monday following an assassination attempt on Republican candidate Donald Trump. This incident has boosted investor confidence in his chances of winning the upcoming U.S. elections.
Trump Media and Technology Group’s Surge
Shares of Trump Media & Technology Group (NASDAQ:DJTWW) skyrocketed by 46%. Trump owns a majority stake in TMTG, which is the parent company of the social media platform Truth Social. The company’s stock has already surged 75% this year, driven by retail traders betting on a Trump victory against Democratic candidate and U.S. President Joe Biden in the November 5th elections.
Crypto Stocks Benefit from Trump’s Cryptocurrency Stance
Crypto stocks also saw a significant boost, tracking bitcoin’s jump to a two-week high. Trump has presented himself as a strong supporter of cryptocurrency, which positively impacted related stocks. Crypto exchange Coinbase Global (NASDAQ:COIN), along with bitcoin miners Riot Platforms Inc (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), added between 5% and 7%.
“Investors are becoming more confident of a Trump victory, and it is starting to be more heavily reflected in certain sectors,” said Rick Meckler, partner at Cherry Lane Investments. However, he noted that the overall market impact remained more muted, with most investors not changing their overall commitment to U.S. equities. The broad stock market rose under both the last Trump administration and the current Biden administration.
Broader Market Reactions
Futures tied to the S&P 500 edged 0.5% higher following the incident. Gun makers and ammunition stocks also jumped significantly, with Smith & Wesson Brands (NASDAQ:SWBI), Sturm Ruger & Company (NYSE:RGR), and Ammo Inc. (NASDAQ:POWW) rising between 5% and 6.7%. Historically, gun stocks tend to rise after mass shootings due to increased calls for gun control, which often lead to a surge in firearm purchases.
Prison Stocks and Software Developer Gains
Prison stocks Geo Group (NYSE:GEO) and CoreCivic (NYSE:CXW) also rose 6.8% and 7.8%, respectively. Both companies could potentially benefit from a Trump presidency, given his promises to crack down on illegal immigration, which could increase demand for detention centers.
Featured Image: Wikipedia