Trump Media, crypto stocks jump as odds of Trump victory rise after shooting
15/07/2024 11:16
July 15 (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) DJT.O
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 BTC=
jump to a two-week high after the attack on Trump, who has
presented himself as a champion of cryptocurrency. Crypto
exchange Coinbase Global COIN.O , bitcoin miners Riot Platforms
Inc RIOT.O and Marathon Digital MARA.O 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 EScv1 edging 0.4% higher.
Gun maker Smith & Wesson Brands SWBI.O 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 GEO.N and CoreCivic CXW.N 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 PHUN.O , hired by Trump's 2020
presidential re-election campaign to build a phone app, jumped
50%, while video-sharing platform Rumble RUM.O , popular with
conservatives, added 18%.
(Reporting by Medha Singh in Bengaluru; Editing by Devika
Syamnath)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X, formerly
Twitter: @medhasinghs;))