More than £1billion was added to the value of Donald Trump’s social media platform yesterday as investors bet that his attempted assassination would propel him back to the White House.
The former president is being tipped for a landslide election victory in November after a gunman opened fire at a rally in Pennsylvania on Saturday.
The prospect of a Republican victory reverberated through financial markets yesterday, with shares in Trump Media & Technology, which is behind his Truth Social platform, rising as much as 50 per cent.
That added £1.3billion to the value of Trump’s 60 per cent stake in the company.
Trump, 78, launched Truth Social in February 2022 after he was banned from Twitter and it is thought the site will see an influx of users if he wins the election.
Flashpoint: Donald Trump is being tipped for a landslide election victory in November after a gunman opened fire at a rally on Saturday
Bitcoin also rose around 10 per cent to more than $63,000 as Trump is seen as the more pro-cryptocurrency candidate.
And US bond yields edged higher amid concerns that the ex-president’s policies could push up inflation and debt.
‘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.
Shares in prison and gun companies were also boosted.
Both industries are seen as potential beneficiaries of a Trump presidency with his promises to crack down on illegal immigration and his positive stance on citizen gun ownership.
Gun stocks also tend to rise after a mass shooting as calls for new controls in the past have led some people to buy more firearms due to a fear that availability would be limited.
Firearm makers and ammunition stocks Smith & Wesson Brands, Sturm Ruger & Company and Ammo all leapt, as did prison stocks Geo and CoreCivic.
Analysts at Rabobank said the market movements ‘chime with the Trumpian theme given the popular narrative of his being good for business and his pro-crypto stance’.
In a note to clients they wrote: ‘For the markets, the complexities of the US political backdrop have been boiled down to the assumption that the weekend events will lead to an increased chance of Trump winning the presidential election.’
On the flipside, clean energy stocks dropped as Trump has made clear he would reverse many of the Biden administration’s climate policies.
‘The caveat is that it’s nearly four months to go and things can change, but today the markets are betting on Trump being the victor,’ said Ben Laidler, head of equity strategy at Bradesco BBI.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
eToro
eToro
Share investing: 30+ million community
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
