Trump Media and Technology Group (TMTG) stock surged sharply after Donald Trump won the election, increasing 24% at market open on Wednesday. Known as a way for fans and supporters to invest in Trump’s future, TMTG shares have become a “proxy” indicator for Trump’s election odds.:max_bytes(150000):strip_icc()/GettyImages-21126426422-d323e18253f84ca48ec2923762a1af07.jpg)
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The company’s stock, which owns Trump’s social media platform Truth Social, opened at $42.19 per share, up from Tuesday’s closing price of $33.94, just before the election results started rolling in. Early Wednesday morning, Associated Press declared Trump the winner in Wisconsin – one of the last crucial states to lean his way, and TMTG shares soared nearly 40% in pre-market trading.
Stock Volatility Leading Up to Election Day
In the weeks leading up to Election Day, TMTG shares experienced significant volatility. The stock dropped sharply last week as polls showed Democratic nominee Kamala Harris gaining ground in key battleground states. However, just days before the election, shares rebounded in a bout of “pre-election excitement,” as confidence in Trump’s victory grew.
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Impact of Trump’s Victory on Financial Markets
Trump’s victory spread excitement across financial markets. U.S. stock futures also surged following the win. Dow Jones futures rose more than 1,315 points, the S&P 500 futures climbed 2.15%, and Nasdaq futures were up by 1.53%. This shows investor optimism about the potential positive economic impact of Trump’s second term.
Bitcoin Reaches Record High
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Not only did the stock market respond, but Bitcoin, the popular cryptocurrency, also hit a record high, reaching $74,400 on Tuesday night as signs pointed toward Trump leading the election. Bitcoin continued to rise Wednesday morning, up 7%, as investors anticipated Trump’s favorable stance on cryptocurrency regulation.
Tesla Stock Rises as Elon Musk Supports Trump
Tesla shares also benefited significantly as Elon Musk, Tesla’s CEO and a strong Trump supporter, actively campaigned in the final weeks before the election. Tesla shares jumped by 13%, largely driven by investor optimism that a Trump administration could benefit major corporations and visionary leaders like Musk.
Impact of a Trump Administration on Various Industries
Trump’s second term is expected to benefit industries such as oil and gas, cryptocurrency, defense, and banking. However, some experts warn that Trump’s tariffs may reduce some benefits these sectors receive. Private prison operators are also expected to benefit from Trump’s proposed deportation program, which suggests increased measures to deport undocumented immigrants.
As America prepares to enter Trump’s second term, stock market fluctuations and the sharp increase in stocks tied to his policies indicate a positive outlook for many investors and businesses.
