Shares in Donald Trump's media company rise as Wall Street is buoyed
Shares in Donald Trump’s media company have surged to their highest point since mid-June in the opening minutes of trading on Wall Street, as investors bet that the attempted assassination of the former president will boost his chances of re-election.
The share price of Trump Media and Technology Group soared as high as $46.27 on Monday morning in New York – before dropping back to $39. That was a steep 27% increase, although not quite the $50 mark that had been indicated in pre-market trading.
The theory that traders appeared to be following was that the assassination attempt makes Trump’s election more likely in November, and that that would somehow increase earnings significantly from Truth Social, his rival network to X, formerly Twitter.
But it was not just Trump-specific assets that gained ground. US markets also rose more broadly, and the Dow Jones industrial average rose to a new record high.
Bob Savage, head of markets strategy and insights at BNY Mellon, an investment bank, said:
The narrative for the day rests on the “Trump Trade” with many investors assuming the weekend events add to the former president being re-elected. The logic being that the chances of tax cut extensions and higher trade tariffs – leading to even higher US fiscal deficits, even alongside potential growth headwinds and intense political pressure on the Federal Reserve to ease as inflation continues to subside near term. Some also suspect a possible withdrawal of US support for Ukraine would also up fiscal pressures in Europe, who may then have to pick up the funding for the war.
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US stock indices gain after Donald Trump assassination attempt
US stock markets have risen at the opening bell on Monday, in a move some analysts said was related to increased expectations of a presidential election victory by Donald Trump after the attempted assassination on Saturday.
Here are the opening snaps, via Reuters:
S&P 500 UP 23.71 POINTS, OR 0.42%, AT 5,639.06
NASDAQ UP 92.11 POINTS, OR 0.50%, AT 18,490.56
DOW JONES UP 281.17 POINTS, OR 0.70%, AT 40,282.07
The assassination attempt, and Trump’s defiant reaction, have prompted some people to say that a Republican victory is more likely.
Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said:
In a Republican administration, you’ll see a lower tax policy, lower regulatory policy... that’s typically good for stocks. We’re seeing some of that in terms of forward looking expectations from investors at this point.
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