Trump Media and Tesla shares rise after Trump's second election victory
Kyiv • UNN
Following Donald Trump's victory in the US presidential election, Trump Media shares rose by 30% and Tesla by 15%. Market indices hit historic highs amid expectations of tax cuts.
Shares of Trump Media, Tesla, and a number of other low-capitalization companies focused on the domestic market rose sharply on Wednesday amid Donald Trump's triumph. UNN writes about this with reference to Reuters.
Details
Tesla shares jumped 15% as CEO Elon Musk supported Trump throughout his election campaign. Trump has promised to appoint Musk as the head of the government's efficiency commission.
The shares of Trump Media & Technology Group, in which the former president holds a controlling stake, have soared by about 30%. It has almost tripled in price since its historic low in late September. His stake was last estimated at around $5 billion.
Meanwhile, futures on the S&P 500 and the Dow hit all-time highs, and futures tied to the Russell 2000 index rose 6.2% on bets that U.S. companies will benefit from tax and tariff cuts that will boost domestic production.
"The market believes that Trump's presidency will give a boost to growth in the short term due to some corporate tax relief and deregulation," Frederic Carrier, head of investment strategy at RBC Wealth Management in the British Isles and Asia, told Reuters.
He recalled that in historical experience, a Republican victory was a strong backdrop for the S&P 500, while a Republican presidency with a split Congress produced a more muted result.
Shares of JPMorgan Chase (JPM.N), Bank of America (BAC.N), and Wells Fargo (WFC.N), which are usually sensitive to the US economic outlook, jumped between 7% and 9%.
The victory of Trump, who positions himself as a supporter of cryptocurrencies, has pushed bitcoin to a record high. Cryptocurrencies such as Coinbase (COIN.O), MicroStrategy (MSTR.O), Riot Platforms (RIOT.O), and MARA Holdings (MARA.O) jumped between 10% and 13%.
Recall
The French president suggested that the 27 EU member states coordinate a common strategy in the wake of a potential Trump victory.
