(Bloomberg) -- The shares of Donald Trump’s media company surged on Monday after a failed assassination attempt on the former president over the weekend boosted momentum for the so-called Trump trade across markets.
Trump Media & Technology Group Corp., which trades under the ticker DJT and debuted earlier this year, gained 31% on Monday to reach the highest level since June 12. Other stocks seen as benefiting from the Republican winning another term — from private prison firms to cryptocurrency miners — also rallied to start the week.
“It’s all about the Trump trade right now,” said Matthew Tuttle, chief executive officer at Tuttle Capital Management. The reaction in Trump Media shares is expected as investors tend to use the stock as “the direct Trump trade,” he added.
The chances of the presumptive Republican candidate, who was shot at a rally in Pennsylvania on Saturday, winning a second term increased in the aftermath of the attack, according to PredictIt data.
Shares of Trump Media have been volatile since debuting in March as traders responded to Trump’s and President Joe Biden’s shifting odds of clinching the presidential race. The former president owns a majority stake in the company, which operates the social media platform Truth Social that was launched after Trump’s ban from major sites following the 2021 Capitol riot.
Conservative video network company Rumble Inc. gained 21% on Monday, reaching a session high after Trump picked Ohio Senator JD Vance as his running mate. Vance co-founded venture capital fund Narya Capital Management, which participated in an investment round for Rumble in 2021.
More broadly, the presidential candidate’s rising odds of victory bolstered sectors seen as benefitting from another Trump term. Gun stocks rose, with Smith & Wesson Brands Inc. gaining the most since March. Private prison companies GEO Group Inc. and CoreCivic Inc. rose.
Cryptocurrency-linked stocks including Coinbase Global Inc. and miners like Marathon Digital Holdings Inc. gained as Bitcoin rallied. Tesla Inc. rose after Elon Musk endorsed Trump.
Meanwhile, shares of solar energy firms slumped, given Democrats are seen as being more friendly toward the industry. The Invesco Solar ETF sank the most since February.
The broader market ticked higher to start the week, with the S&P 500 rising about 0.3%.
“While expectations of a Trump win in November are boosting futures this morning, the event is unlikely to sustainably impact markets,” wrote Tom Essaye, president and founder of Sevens Report.
--With assistance from Joel Leon, Esha Dey, Bailey Lipschultz, Vrishti Beniwal and Angel Adegbesan.
(Updates stock moves. An earlier version corrected the description of Trump Media ownership.)
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