Crypto stocks, gun stocks, and shares of companies that could benefit from a Donald Trump presidency saw a boost on Monday after an assassination attempt on the Republican candidate raised expectations of his victory in the November election. Trump’s survival after being shot in the ear at a rally in Pennsylvania increased his lead in betting odds over President Joe Biden. Betting contracts for a Trump victory traded at 70 cents on PredictIt, up from 60 cents on Friday. Shares of Trump Media & Technology Group, owned by Trump, soared 31%, reaching a market value of $7.7 billion. The company, parent to social media platform Truth Social, has seen its shares surge 132% in 2024 as retail traders bet on Trump winning a second term.
Electric vehicle maker Tesla’s shares ended 1.8% higher after CEO Elon Musk endorsed Trump following the shooting. However, the announcement of U.S. Senator J.D. Vance as Trump’s running mate led to Tesla giving back earlier gains. Vance introduced legislation last year to eliminate EV tax subsidies, which could impact the White House’s clean vehicle strategy. Crypto stocks also surged on Monday, tracking a 10% rally in bitcoin. Long-dated U.S. bond yields rose on expectations of Trump policies driving up government debt and stoking inflation.
Gun makers and ammunition stocks, as well as private prison operators, saw gains as they are potential beneficiaries of a Trump presidency. Video-sharing platform Rumble, popular with conservatives, soared 21%. Clean energy stocks slipped as Trump has indicated he would reverse many of the Biden administration’s climate policies. U.S. voters view Trump as the better candidate for the economy, despite Biden’s administration benefiting from a solid economy. Investors believe a second Trump presidency could escalate trade tensions with China. Overall, traders are speculating on the potential economic stimulus, lower taxes, less regulation, and increased tariffs under a second Trump term.