President-elect Donald Trump's victory speech gave a boost to stocks that had been watching for signs of his return to the White House, reflecting investor optimism about a return to policies that could lead to more economic growth.
Trump Media's 61% Gain
In premarket trading in New York, Trump Media Inc., the company he founded, led the gainers after surging 61% to $54.99, doubling the company’s value in less than a week. The surge reflects investors’ interest in the company’s potential amid hopes that the former president will return to the White House and the policies that could support its expansion.
Tesla benefits from Trump-Musk relationship
The gains were not limited to Trump Media, but also included Tesla, in which billionaire Elon Musk owns a majority stake, whose shares rose 14% to $286. Musk had declared his support for Trump during the election campaign, and even expressed his willingness to work with his administration, as there were reports that he could be appointed to a government position within Trump’s new team. This support from a prominent figure like Musk boosts investor confidence in Tesla and reflects positive expectations about the potential relationship between the next administration and major technology companies, which led to Tesla’s shares rising in the market and expectations of its future growth in light of more supportive policies for this sector.
Banking shares rose 6%
In the banking sector, the shares of major US banks witnessed a remarkable rise, with Bank of America, Citibank, JP Morgan, Wells Fargo, and Goldman Sachs each rising by about 6%. This jump reflects investors’ optimism about the possibility of the return of financial policies that contribute to supporting the banking sector, especially in light of expectations of legislation that reduces regulatory restrictions, which may allow banks to expand their operations.
Crypto stocks.. jumps exceeding 10%
Additionally, a number of cryptocurrency and crypto investment firms also boosted the advance, with gains exceeding 13% for MicroStrategy, Coinbase, Robinhood, Marathon Digital, and Riot Platforms. These gains were driven by optimism that Trump’s policies may be more receptive to fintech and cryptocurrencies, prompting investors to pump more money into these riskier assets.
