Shares in Donald Trump’s media company 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, marking a steep 27% increase, although not quite reaching the $50 mark indicated in pre-market trading.
Key Takeaways:
Trump Media shares surged 27% following the assassination attempt on Donald Trump.
Broader US markets, including the Dow Jones, reached new record highs.
Leading cryptocurrencies like Bitcoin and Ethereum saw significant price movements.
Shares of firearm and ammunition manufacturers rose amid the renewed gun control debate.
Investor sentiment reflects increased speculation on Trump’s election chances and potential policy changes.
Market Reaction to Trump Assassination Attempt
The theory that traders appeared to be following was that the assassination attempt makes Trump’s election more likely in November, potentially increasing earnings 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, with the Dow Jones Industrial Average reaching a new record high.
Bob Savage, head of markets strategy and insights at BNY Mellon, 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." Investors are betting on tax cut extensions, higher trade tariffs, and increased political pressure on the Federal Reserve to ease as inflation continues to subside in the near term.
Broader Market Implications
The impact of the assassination attempt extended beyond Trump Media and Technology Group. Leading cryptocurrencies and related stocks continued their climb on Monday, possibly in reaction to a potential Republican victory in the November presidential election and a more unstable political environment. Bitcoin rose 0.5% and was trading at $63,785 late Monday after topping $60,000 Sunday for the first time since mid-June. Ethereum surged earlier on Monday and was recently down 0.4%. Solana was up 0.5%.
Cryptocurrency Market Reaction
Alexander Blume, chief executive and co-founder of Two Prime, said, "Market structure dictates price action, and news events can act as a catalyst. With the prior week’s drawdowns due to short-term German selling, Bitcoin was likely poised for a rebound either way." He added that Trump's pro-bitcoin stance and his increasingly rosy odds of being elected, with the assassination attempt bolstering this further, seem to be a meaningful catalyst moving the price upwards.
Performance of Other Sectors
Elsewhere, shares of Tesla rose 1.8% following Elon Musk’s endorsement of Trump’s candidacy for president. Other sectors also saw movement following the weekend’s events. Shares of firearm and ammunition makers climbed, with Smith & Wesson Brands Inc. up 11.4%, Sturm Ruger & Co. up 5.4%, and Ammo Inc. rising 15.1%. In the bond market, Coinbase’s convertible bonds rallied along with the stock, heading back toward their conversion price.
Impact on Gun Control Debate
While the shooting has once again brought the issue of gun control into the spotlight, Trump has positioned himself as pro–Second Amendment. This stance likely contributed to the rise in shares of firearm and ammunition manufacturers, reflecting investor sentiment towards potential policy directions under a Trump administration.
Conclusion
The assassination attempt on Donald Trump has had significant effects on Wall Street and broader markets. Shares in Trump Media and Technology Group soared, and the Dow Jones Industrial Average reached new highs as investors speculated on the impact of the event on Trump’s election chances. The cryptocurrency market and other sectors also reacted strongly, reflecting the broader implications of the incident on investor sentiment and market dynamics.
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