The stock market is buzzing this morning as Donald Trump’s victory in the 2024 presidential election sends shockwaves through Wall Street. Shares of Trump Media & Technology Group Corp (DJT), the parent company of the social media platform Truth Social, are skyrocketing, surging over 30% in early trading.
Trump’s win has ignited optimism among investors who anticipate a boost to the U.S. economy under his presidency. The market believes a Trump administration will lead to lower taxes, deregulation, and increased economic growth. This sentiment is reflected in the broader market’s rise, particularly in the Russell 2000 Index, which tracks smaller, U.S.-focused companies.
Frédérique Carrier, head of investment strategy for RBC Wealth Management, commented on the market’s reaction: “The market believes a Trump presidency will unleash animal spirits and give a boost to growth in the short-term through some relief on corporate taxes and deregulation.”
The Republican sweep, with the GOP winning control of the U.S. Senate and the White House, is further amplifying investor confidence. While the outcome of the U.S. House of Representatives remains uncertain, a Republican-controlled government is historically associated with positive returns for the S&P 500.
Beyond Trump Media, several other stocks linked to the former president are experiencing significant gains. Tesla Inc (TSLA) shares jumped over 12%, fueled by Elon Musk’s strong support for Trump and the potential for Musk to lead a government efficiency commission under a Trump administration.
Bitcoin (BTC/USD) also soared to record highs on Tuesday night, as Trump has positioned himself as a pro-crypto candidate. Earlier this year, he stated his desire for all Bitcoin to be produced within the U.S. This sentiment has driven up crypto-linked stocks, including MicroStrategy Inc (MSTR) and Coinbase Global Inc (COIN), along with Bitcoin mining stocks.
The Trump victory has undeniably ignited a wave of optimism in the market, and the stock market’s early performance suggests a potentially bullish future. However, as with any market fluctuation, investors should exercise caution and conduct thorough research before making any investment decisions.