Gun and Prison Stocks Gain as Trump’s Election Odds Improve Post-Rally Incident

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Gun and Prison Stocks Gain as Trump’s Election Odds Improve Post-Rally Incident
Former US President and Republican presidential candidate Donald Trump speaks during a campaign event at Butler Farm Show Inc. in Butler, Pennsylvania, July 13, 2024. Donald Trump was hit in the ear in an apparent assassination attempt by a gunman at a campaign rally on Saturday, in a chaotic and shocking incident that will fuel fears of instability ahead of the 2024 US presidential election. REBECCA DROKE/AFP via Getty Images

In premarket trading on Monday, July 15, stocks massively benefited from a potential Donald Trump presidency surged following an assassination attempt at one of his rallies.

Hours after the incident, where Trump was reportedly shot in the ear but remained unharmed, VCPost reported that there was a notable uptick in investor optimism regarding his electoral prospects against incumbent President Joe Biden.

According to Reuters, leading the charge was Trump Media & Technology Group (TMTG), catapulting by a staggering 67%. With Trump holding a significant stake valued at approximately $3.8 billion, the company, which oversees the Truth Social platform, has seen its stock surge 75% this year, largely fueled by speculation among retail traders anticipating a Trump victory in the upcoming November rematch.

Additionally, companies directly linked to Trump's political enterprises saw substantial surges. Phunware, tasked with developing a campaign app for Trump during his 2020 presidential bid, saw a 50% spike, while Rumble, a favored platform among conservatives, recorded an 18% increase.

Crypto, Gun and Prison Stocks After Donald Trump's Assassination Attempt

At the same time, cryptocurrency-related stocks experienced a robust uptrend, mirroring Bitcoin's climb to a two-week high. Coinbase Global, Riot Platforms Inc, and Marathon Digital all posted gains between 6% and 7%, buoyed by Trump's perceived favorable stance towards digital assets.

Analysts attributed the rally to market anticipation that a strengthened Trump campaign could improve regulatory environments conducive to cryptocurrency investments.

Elsewhere, sectors traditionally influenced by political rhetoric also saw notable gains. Smith & Wesson Brands, known for its firearms, rose by 2.7%, a common occurrence post-violence incidents due to heightened demand amid fears of stricter gun control measures.

Similarly, prison operators Geo Group and CoreCivic saw increases of approximately 7%, responding to Trump's previous pledges to intensify immigration enforcement, potentially boosting demand for detention facilities.

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