Guns, prisons and Truth Social: Stocks on the rise after Trump shooting

Crypto stocks and other shares that could benefit from a Trump presidency jumped as an assassination attempt on the Republican candidate boosted his odds.

While many across the United States and the world, including President Joe Biden, are urging Americans to lower the political temperature in the country in the wake of a failed assassination attempt on former president Donald Trump, some stocks on Wall Street looked upbeat this week.

Crypto stocks, prison operators and other shares that could benefit from a Trump presidency jumped on Monday, as an assassination attempt on the Republican candidate boosted his odds of an election victory in November.

Trump Media & Technology Group, owner of the former president’s Truth Social platform, soared 35 per cent. Trump owns a majority stake in the company, worth about $3.8 billion as of late June, according to LSEG data.

The stock has surged 75 per cent this year, driven by retail traders betting Trump will win the rematch against his Democratic rival, Biden.

Online betting site PredictIt showed bets of an election win for Trump at 67 cents, up from Friday’s 60 cents, with Biden at 27 cents.

Also getting a boost: crypto stocks, tracking bitcoin’s jump to a two-week high, as Trump has presented himself as a champion of cryptocurrency. Crypto exchange Coinbase Global and bitcoin miners Riot Platforms and Marathon Digital all rose.

Gunmakers and prison stocks jumped. Gun stocks like Smith & Wesson Brands and Sturm Ruger & Company tend to rise after a mass shooting as calls for gun control can lead some people to buy more firearms, fearing their availability may become limited.

Prison operator stocks Geo Group and CoreCivic also gained, as Trump has promised to crack down on illegal immigration, which could boost demand for detention centres.