Donald Trump has won the presidency and businesses connected to him and his allies are growing. According to early financial reports, winners include banks, crypto-related stocks, and private prison companies. All the worst people in the financial game.
Trump Media & Technology Group collapsed in the early hours of Tuesday’s election as people waited to see who would be elected president. It was Monday but it crashed so hard during the election that the stock exchange was temporarily suspended. On November 3, it reached $32.80 a share.
On Wednesday, however, as the markets woke up to the news that Trump would return to the White House, DJT rose. It jumped 10% in after-hours trading Tuesday night as early poll returns favored Trump. It’s up less than 8% year to date, trading around $42 a share as of this writing.
Crypto stocks also gained heavily following Trump’s election. Bitcoin reached $73,737, which is an average of almost 10%. Ether, Solana, and other cryptocurrencies followed suit. Trump, led by his son Barron, is the most crypto-friendly president. His campaign raised millions in crypto donations. On the campaign trail, Trump promised to make America the “crypto capital of the planet.”
Elon Musk is also reaping the early rewards of Trump’s victory. Shares of Tesla got the world going this morning and are up 15% as of this writing. Musk joined Trump after an attempt on the president-elect’s life over the summer. He bet big on Trump winning. It looks like the bet is starting to pay off. In addition to the rising stock price, Musk is expected to have a seat at the White House table. Musk has teased that he will be responsible for cutting government spending, but details are still unclear.
Private prisons also saw a big bump in stock prices. GEO Group is up a staggering 26% this morning and CoreCivic—aka Corrections Corporation of America—is up 20%. Why? One of Trump’s biggest campaign promises was the deportation of undocumented immigrants. That kind of system would require a lot of infrastructure. Camps, if you like, where you can concentrate large groups of people. It’s a good bet that private prisons stand to make a lot of money from this activity.
Overall, the stock market favors a Trump victory. The dollar, yields on US Treasury bonds, and the S&P 500 are all down. How long that will last is anyone’s guess. Even Elon Musk emphasized that Trump’s policies will improve the American economy.
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