Trump Media, crypto stocks jump as odds of Trump victory rise after shooting
07/15/2024 17:28Investors said trades betting on Trump's victory will increase this week after he was shot in the ear during the rally in Pennsylvania. Shares of Trump Media & Technology Group (TMTG) soared 67%. Trump owns a majority stake in the company, worth about $3.8 billion as of June 25 according to LSEG data, and it is the parent of social media platform Truth Social.
(Reuters) - Crypto stocks, prison operators and other shares that could benefit from a Donald Trump presidency in the U.S. jumped during premarket trading on Monday as the Republican candidate's odds of winning rose after an assassination attempt at a rally.
Investors said trades betting on Trump's victory will increase this week after he was shot in the ear during the rally in Pennsylvania. The former U.S. president pumped his fist moments after the attack and his campaign said he was fine.
Shares of Trump Media & Technology Group (TMTG) soared 67%. Trump owns a majority stake in the company, worth about $3.8 billion as of June 25 according to LSEG data, and it is the parent of social media platform Truth Social.
TMTG stock has surged 75% this year, driven by retail traders betting on a Trump victory at the Nov. 5 rematch with President Joe Biden, who is a Democrat.
Crypto stocks also got a boost, tracking bitcoin's jump to a two-week high after the attack on Trump, who has presented himself as a champion of cryptocurrency. Crypto exchange Coinbase Global, bitcoin miners Riot Platforms Inc and Marathon Digital added between 6% and 7%.
"Trump is seen to be pro-crypto and the theory that he is now in a stronger position in the race to the White House has fired up traders looking for assets to benefit if he gets back into power," said Dan Coatsworth, investment analyst at AJ Bell.
However, "markets were surprisingly calm given the assassination attempt", Coatsworth said.
The broader U.S. market was subdued, with futures tied to the S&P 500 edging 0.4% higher.
Gun maker Smith & Wesson Brands gained 2.7%. Gun stocks tend to rise after a mass shooting as calls for gun control in the past have led some people to buy more firearms out of fear that their availability would be limited.
Prison stocks Geo Group and CoreCivic also rose about 7% each. Both are potential beneficiaries of a Trump presidency as he has promised to crack down on illegal immigration, which could boost demand for detention centers.
Software developer Phunware, hired by Trump's 2020 presidential re-election campaign to build a phone app, jumped 50%, while video-sharing platform Rumble, popular with conservatives, added 18%.
(Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)