The value of assets connected to Donald Trump, along with others anticipated to benefit from his administration, saw a surge following his clear electoral win on Tuesday.
Trump Media and Technology Group, the owner of the Truth Social media platform, led the gains, with its stock closing up 6% in Wednesday trading. Trump is the primary shareholder in the company.
Shares of Tesla, the electric vehicle manufacturer owned by Elon Musk, also saw a significant rise of 15%. Musk, a prominent supporter of Trump’s campaign, is rumored to be considered for a Cabinet-level position where he would address government efficiency, aligning with Trump’s priorities.
Bitcoin’s price similarly spiked by 9%, reaching a record high of nearly $76,000. Cryptocurrencies and firms in the crypto space experienced broad gains on Wednesday. Trump has expressed intentions to reduce regulation within the cryptocurrency sector, a key financial backer of his campaign, alongside Vice President Kamala Harris’s. Trump was also the keynote speaker at this year’s annual Bitcoin conference in Nashville.
Isaac Boltansky, managing director and director of policy research at BTIG, highlighted in a note to clients Wednesday that several other sectors stand to gain from a second Trump administration, including private prisons, fossil fuels, nuclear energy, clean coal, defense contractors, and online finance companies that may otherwise face regulatory scrutiny.
Trump has broadly promised to implement significant tax cuts and ease regulations, a move that the business community is poised to welcome. Stocks across the board rose Wednesday, anticipating a potential period of accelerated economic growth.
