(Bloomberg) — Shares of Donald Trump’s media company rose Monday after a failed assassination attempt on the former president over the weekend boosted momentum for the so-called Trump trade across markets.
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Trump Media & Technology Group Corp., which trades under the ticker DJT and debuted earlier this year, gained 31% on Monday, reaching its highest level since June 12. Other stocks seen as benefiting from the Republican winning another term – from private prison companies to cryptocurrency miners – also rallied earlier in the week.
“Right now it’s all about negotiating with Trump,” said Matthew Tuttle, CEO of Tuttle Capital Management. The reaction in Trump Media shares is expected as investors tend to use the stock as “Trump’s straight trade,” he added.
The chances of the presumptive Republican nominee, who was shot at a rally in Pennsylvania on Saturday, winning a second term increased after the attack, according to data from PredictIt.
Trump Media shares have been volatile since their March debut as investors responded to the changing odds of Trump and President Joe Biden winning the presidential race. The former president owns a majority stake in the company, which operates the social media platform Truth Social, launched following Trump’s ban from major websites following the 2021 Capitol riot.
Conservative video networking company Rumble Inc. gained 21% on Monday, hitting a session high after Trump picked Ohio Sen. J.D. Vance as his running mate. Vance co-founded the venture capital fund Narya Capital Management, which participated in an investment round for Rumble in 2021.
More generally, the growing chances of the presidential candidate’s victory reinforced sectors considered to benefit from another Trump term. Gun stocks rose, with Smith & Wesson Brands Inc. gaining the most since March. Private prison companies GEO Group Inc. and CoreCivic Inc.
Cryptocurrency-linked stocks including Coinbase Global Inc. and miners such as Marathon Digital Holdings Inc. gained from Bitcoin’s rally. Tesla Inc. rose after Elon Musk endorsed Trump.
Meanwhile, shares of solar energy companies have fallen as Democrats are seen as friendlier to the industry. The Invesco Solar ETF has sunk the most since February.
The broader market rose to start the week, with the S&P 500 up about 0.3%.
“While expectations of a Trump victory in November are driving futures this morning, the event is unlikely to have a sustainable impact on markets,” wrote Tom Essaye, president and founder of Sevens Report.
–With assistance from Joel Leon, Esha Dey, Bailey Lipschultz, Vrishti Beniwal and Angel Adegbesan.
(Updates stock movements. An earlier version corrected the description of Trump Media ownership.)
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