Trump £1bn richer after Truth Social shares surge following failed assassination attempt

More than £1bn was added to the value of Donald Trump’s social media platform yesterday as investors bet his assassination attempt would propel him back to the White House.

The former president is expected to win a landslide victory in November’s election after a gunman opened fire at a rally in Pennsylvania on Saturday.

The prospect of a Republican victory resonated through financial markets yesterday, with shares in Trump Media & Technology, the company behind his Truth Social platform, rising by as much as 50 percent.

This added £1.3bn to the value of Trump’s 60 per cent stake in the company.

Trump, 78, launched Truth Social in February 2022 after being banned from Twitter and the site is thought to see an influx of users if he wins the election.

Bitcoin also rose around 10 percent to over $63,000 as Trump is seen as the most pro-cryptocurrency candidate.

And U.S. bond yields rose amid concerns that the former president’s policies could fuel inflation and debt.

“Investors are increasingly confident of a Trump victory and that is starting to be reflected more strongly in certain sectors,” said Rick Meckler, a partner at Cherry Lane Investments.

Shares of prison and weapons companies also rose.

Both industries are seen as potential beneficiaries of a Trump presidency with his promises to crack down on illegal immigration and his positive stance on gun ownership.

Gun stocks also tend to rise after a mass shooting, as calls for new controls in the past have led some people to buy more firearms out of fear that availability would be limited.

Firearms makers and ammunition stocks Smith & Wesson Brands, Sturm Ruger & Company and Ammo rose, as did prison stocks Geo and CoreCivic.

Rabobank analysts said the market moves “fit with the Trumpian theme given the popular narrative that he is good for business and his pro-crypto stance.”

In a note to clients, they wrote: “For markets, the complexities of the US political backdrop have boiled down to the assumption that the weekend’s events will increase the chances of Trump winning the presidential election.”

Clean energy stocks, meanwhile, fell after Trump made clear he would reverse many of the Biden administration’s climate policies.

“The problem is that there are almost four months left and things can change, but today the markets are betting that Trump will be the winner,” said Ben Laidler, head of equity strategy at Bradesco BBI.