Trump £1bn richer as Truth Social shares surge after failed assassination attempt

Yesterday, the value of Donald Trump’s social media platform increased by more than £1billion as investors bet his assassination attempt would put him back in the White House.

The former president is tipped for a landslide election victory in November after a gunman opened fire at a rally in Pennsylvania on Saturday.

The prospect of a Republican victory reverberated through financial markets yesterday, with shares of Trump Media & Technology, the company behind his Truth Social platform, rising as much as 50 percent.

This increased the value of Trump’s 60 percent stake in the company by £1.3 billion.

Trump, 78, launched Truth Social in February 2022 after being banned from Twitter. The site is expected to see a surge in users if he wins the election.

Bitcoin also rose around 10 percent to over $63,000 as Trump is seen as the most pro-cryptocurrency candidate.

And U.S. Treasury yields rose slightly on concerns that the ex-president’s policies could increase inflation and the national debt.

“Investors are becoming increasingly confident in a Trump victory and that is starting to become more apparent in certain sectors,” said Rick Meckler, partner at Cherry Lane Investments.

Shares of prison and weapons companies also rose.

Both sectors are seen as potential beneficiaries of a Trump presidency, given his promises to tackle illegal immigration and his positive stance on civilian gun ownership.

Gun stockpiles also typically surge after a mass shooting, as calls for new controls in the past have led people to buy more firearms out of fear that availability would be limited.

Gun manufacturers and ammunition stocks Smith & Wesson Brands, Sturm Ruger & Company and Ammo all rose, as did prison stocks Geo and CoreCivic.

Analysts at Rabobank said the market moves are “in line with the Trumpian theme, given the popular narrative that he is good for business and his pro-crypto stance.”

In a note to clients, they wrote: ‘For the markets, the complexity of the US political context has been reduced to the assumption that the weekend’s events will increase the likelihood of Trump winning the presidential election.’

On the other hand, clean energy stocks fell as Trump has made it clear he wants to roll back many of the Biden administration’s climate policies.

“The caveat is that it’s still almost four months away and things could still change, but markets are now betting that Trump will be the winner,” said Ben Laidler, head of equity strategy at Bradesco BBI.