Crypto stocks, gun stocks and shares of other companies that could benefit from a Donald Trump presidency jumped on Monday after an assassination attempt on the Republican candidate boosted expectations he would win the November election.
Trump’s survival after he was shot in the ear during a rally in Pennsylvania on Saturday increased his already considerable lead in betting odds over President Joe Biden.
Those odds rose more later on Monday after Trump chose U.S. Senator J.D. Vance to be his vice presidential running mate as the Republican Party officially nominated the former president to run again at the start of the party’s national convention in Milwaukee.
On politics-wagering website PredictIt, contracts for a Trump election victory traded at 70 cents, up from 60 cents on Friday, with a potential payout of $1. Contracts for a Biden victory were at 26 cents.
Shares of Trump Media &Technology Group, majority-owned by Trump, soared 31%, lifting its stock market value to $7.7 billion, despite revenue comparable to two U.S. Starbucks shops.
Trump Media is the parent company of social media platform Truth Social, and its shares have now surged 132% in 2024 as retail traders bet Trump will win a second term as president. Added: He previously served from 2017 to 2021.
“It’s nearly four months to go (until the election) 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, adding that Trump Media “is the tip of the spear and the most sensitive to a Trump victory.”
Shares of electric vehicle maker Tesla ended 1.8% higher after billionaire CEO Elon Musk publicly endorsed Trump following the shooting.
Tesla gave back earlier gains of as much as 7% after the announcement of Vance as Trump’s running mate.
Vance last year introduced legislation to eliminate EV tax subsidies and replace them with tax credits for U.S.-made gasoline or diesel-powered vehicles. The bill would gut a core part of the White House clean vehicle strategy and has no realistic chance of winning approval in the current Democratic-controlled Senate.
Crypto stocks soared on Monday, tracking a 10% rally in bitcoin to a two-week high. Trump has presented himself as a champion of cryptocurrency. Crypto exchange Coinbase Global and bitcoin miners Riot Platforms and Marathon Digital jumped between 11% and 18%.