Trump stock trades fade after fiery presidential debate

09/11/2024 23:47

Trump trades are slumping following Tuesday's presidential debate.

Stocks previously seen as beneficiaries of former president Donald Trump's prospects for a second term tanked on Wednesday after a presidential debate between the candidate and Democratic nominee Kamala Harris.

Trump Media & Technology (DJT) dropped as much as 16% in reaction to the encounter in which Harris appeared to get under her rival's skin.

Shares of the company, which operates Truth Social, have been sensitive to Trump's bid for the presidency. The stock has fallen almost 60% since mid-July when it became clear that Harris could replace Biden as the Democratic candidate.

Private prisons stocks — a beneficiary of Trump’s staunch position on illegal immigration and support of increased border patrol — also sank on Wednesday. GEO Group (GEO), a Boca Raton, Fla.-based company that invests in private prisons, fell more than 8%.

CoreCivic (CXW), formerly the Corrections Corporation of America, which owns and manages private prisons and detention centers in the US, also dropped 6%.

Crypto and banks

Bitcoin (BTC-US) took a sharp turn lower during the combative debate and into Wednesday trading, breaking below $57,000 per token. The former president has taken a pro-crypto position, even calling for a strategic national bitcoin stockpile.

Banks, particularly regionals, stand to benefit if Trump were to be elected in November, given the expectation of less stringent bank capital and liquidity regulation.

After Tuesday's debate, shares of Lazard (LAZ), Moelis (MC), and Evercore (EVR), financial firms that provide merger and acquisitions services, dropped.

In this combination photo, Democratic vice presidential candidate Sen. Kamala Harris, D-Calif., speaks during a debate, Oct. 7, 2020, in Salt Lake City, left, and Republican presidential candidate former President Donald Trump speaks during a debate, June 27, 2024, in Atlanta. (AP Photo) (ASSOCIATED PRESS)

Meanwhile stocks seen to benefit if Vice President Harris were elected president rallied Wednesday, despite the overall market downturn.

The biggest movers included beneficiaries of the current Democratic administration's largest piece of green legislation, the Inflation Reduction Act, which Harris helped pass with a tie-breaking vote.

First Solar (FSLR) surged 11% while Enphase Energy (ENPH) rose 5%. SunRun (RUN) also gained more than 7%.

Clean energy stocks rallied on Wednesday following the presidential debate between Kamala Harris and Donald Trump

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.