Trump Media, crypto stocks jump as odds of Trump victory rise after shooting

Cryptocurrency stocks, prison operators and other stocks that could benefit from a Donald Trump presidency jumped in premarket trading on Monday, as the Republican candidate’s odds of winning increased after he was assassinated during a rally.

Investors said trading betting on Trump’s victory will increase this week after he was shot in the ear during a rally in Pennsylvania. The former US president remained clenched in his fist minutes after the attack and his campaign said he was fine.

Trump Media & Technology Group (TMTG) (DJTWW, DJT) shares are up 67%. Trump owns a majority stake in the company, which was valued at about $3.8 billion as of June 25, according to LSEG data, and is the parent company of social media platform Truth Social.

TMTG stock has surged 75% this year as retail investors bet on Trump’s victory in a Nov. 5 rematch with President Joe Biden, a Democrat.

Crypto stocks also got a boost, watching Bitcoin jump to a two-week high following the attack on Trump, who has portrayed himself as a crypto champion. Crypto exchange Coinbase Global, Bitcoin miners Riot Platforms Inc and Marathon Digital gained between 6% and 7%.

“Trump’s perceived pro-cryptocurrency sentiment and the theory that he is now in a stronger position in the White House race have prompted investors to look for assets that could benefit if he wins back power,” said Dan Coatsworth, investment analyst at AJ Bell.

But “markets were surprisingly calm given the assassination attempt,” Coatsworth said.

The broader U.S. market was flat, with futures tied to the S&P 500 rising 0.4%.

Gun maker Smith & Wesson Brands gained 2.7%. Gun stocks have historically tended to rise after mass shootings because calls for gun control have led some people to buy more firearms out of fear that their availability will be limited.

Prison stocks Geo Group and CoreCivic also rose about 7%. Both are potential beneficiaries of a Trump presidency, as he vows to crack down on illegal immigration, which could increase demand for detention centers.

Shares of Phunware, a software developer hired by Trump’s 2020 presidential re-election campaign to develop a phone app, rose 50%, while shares of Rumble, a video-sharing platform popular with conservatives, rose 18%.

(Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)