Trump Media, Tesla, and cryptocurrency enjoy post-election bumps.
Wall Street was awash in an ocean of green ink in the morning after President-elect Donald Trump decisively defeated Vice President Kamala Harris on election night.
In the post-election aftermath, the leading stock market indexes extended their overnight rally.
The blue-chip Dow Jones Industrial Average, for example, surged about 1,200 points, to above 43,000. The tech-heavy Nasdaq Composite Index advanced more than 300 points, while the benchmark S&P 500 Index picked up 2 percent.
Trump Media and Technology Group (TMTG), the parent company of the social media platform Truth Social, surged midweek. Shares, which trade under the ticker DJT, climbed 28 percent, to above $43. Year to date, the stock has risen more than 100 percent.
Trump is the dominant shareholder, and possesses nearly 115 million shares that are worth more than $5 billion, up from $3.9 billion prior to the presidential contest. In recent months, TMTG has served as a proxy for Trump’s electoral odds.
Tesla Motors, meanwhile, increased 12 percent because traders bet that Trump’s victory would benefit industrialist Elon Musk.
Trump has pledged that Musk will lead a new commission, the Department of Government Efficiency (DOGE), to combat “fraud and improper payments.”
Wedbush analyst Dan Ives believes that the electric vehicle titan could reach a market value of $1 trillion under a Trump presidency. The company’s market cap is nearly $800 billion.
“It’s a dream scenario for any Tesla bull. We could now be talking about a $1.5 trillion market cap for Tesla,” Ives told CNBC on Nov. 6. “He will fast-track autonomous regulation. Musk will have a big voice in a Trump administration. Tesla is the most undervalued AI name on the market.”
Other sectors also benefited from Trump’s win.
Cryptocurrencies and crypto-related stocks registered sizable gains as investors welcomed the prospect of a lax regulatory climate for the industry. Trump has promised to establish a Bitcoin strategic reserve, fire Securities and Exchange Commission (SEC) chief Gary Gensler, and make the United States “the crypto capital of the planet.”
Bitcoin spiked to an all-time high of $75,000 in overnight trading.
By Andrew Moran
