Stocks linked to Donald Trump, including crypto stocks and prison operators, surged in premarket trading on Monday following an assassination attempt on the Republican candidate, which increased his odds of winning the US presidential election.
Investors predicted a rise in trades favoring Trump’s victory this week after he was shot in the ear during a rally in Pennsylvania. Trump, appearing unfazed, pumped his fist moments after the attack, with his campaign assuring the public of his well-being.
Shares of Trump Media & Technology Group (TMTG) skyrocketed 46 percent. Trump holds a majority stake in the company, valued at approximately $3.8 billion as of June 25, according to LSEG data. TMTG, the parent company of social media platform Truth Social, has seen its stock climb 75 percent this year, driven by retail traders betting on a Trump victory in the November 5 rematch against Democratic candidate and current US President Joe Biden.
Crypto stocks also benefited, tracking bitcoin’s rise to a two-week high, as Trump has portrayed himself as a supporter of cryptocurrency. Crypto exchange Coinbase Global and bitcoin miners Riot Platforms Inc and Marathon Digital rose between 5 percent and 7 percent.
“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 was more subdued. “Most investors are not changing their overall commitment to US equities. After all, the broad stock market rose under the last Trump administration and has risen under the Biden administration as well,” Meckler added.
Gun makers and ammunition stocks, including Smith & Wesson Brands, Sturm Ruger & Company, and Ammo, jumped between 5 percent and 6.7 percent. Gun stocks often rise after mass shootings due to fears that gun control measures might limit firearm availability.