The recent assassination attempt on former President Donald Trump has sent shockwaves through the political landscape, and its impact is being felt in the financial world as well. Trump Media & Technology Group’s stock price surged 32% on Monday, reaching $40.87, as investors recalculated the odds of Trump’s reelection. This jump reverses a six-week slump in Trump Media shares, which have been known to exhibit volatile trading patterns.
The aftermath of the shooting at Trump’s rally
As the largest shareholder of Trump Media, the former president’s stake in the company has also increased significantly, now valued at $4.7 billion. This surge in stock price has added about $1.9 billion to the company’s market value, which now stands at $7.8 billion.
It’s worth noting that Trump Media’s shareholders include many small investors who have bought the stock to express their support for the former president. As a result, the company’s stock price tends to act as a barometer of Trump’s reelection odds. In fact, The Economist’s prediction model now gives Trump a 3 in 4 chance of winning the November presidential election.
“[T]he events of the past few weeks — Joe Biden’s shockingly poor debate performance, followed by Saturday’s attempted assassination of Donald Trump — all but guarantee a strong Republican performance in November’s U.S. elections,” said Louis Vincent Gave, CEO of investment research firm Gavekal.
Trump Media’s stock price surge has also sparked speculation among investors, with some predicting that the stock could continue to gain steam in the coming days. Some have even suggested that investors who have shorted the stock could be caught in a so-called “short squeeze,” where they are forced to purchase shares to cover their position.
Trump supporters rallying behind their candidate
One thing is clear: the recent events have added a new level of uncertainty to the political landscape, and investors are eagerly watching to see how it will all play out.
The 2024 presidential election is shaping up to be one of the most unpredictable in history
