Trump Media & Technology (NASDAQ:DJT) stock rose more than 50% in pre-market trading today. This price action comes after a failed assassination attempt against former President Donald Trump.
As of this writing, shares are now trading at around $41 apiece, up more than 30% so far today. That’s much higher than Friday’s closing price of below $30.89 per share. The market capitalization for DJT is currently about $7.8 billion.
President Joe Biden promised a swift and thorough investigation into the incident. Trump Media CEO Devin Nunes issued a statement calling on law enforcement “to identify if any additional persons were involved.”
DJT Stock: The Trump Trade
DJT stock does not trade on the company’s fundamentals. The social media company lost $327.6 million in the first quarter on revenue of $770,000. Instead, shares trade as a proxy for Trump’s chances of winning the presidency, which pundits believe rose after the attack.
Betting markets surveyed by RealClear Polling now give the former President a 65% chance of returning to the White House. Before the attack, it was a 56% chance.
Stocks tied to cryptocurrency, which Trump has expressed support for, also rose in the wake of the attack. Coinbase (NASDAQ:COIN) is up 9% as of this writing. Bitcoin (BTC-USD) is up 3%.
Stocks are also strong so far today, based on economic fundamentals. Currently, the broad Russell 2000 is up 1.3% while the Dow Jones Industrial Average is up 0.5% and the Nasdaq Composite is up 0.95%. Gold and oil futures were down slightly earlier today.
Multiple business leaders have issued statements condemning the shooting. Perhaps more importantly, Tesla (NASDAQ:TSLA) CEO Elon Musk endorsed Trump online in the wake of the shooting, calling him “tough.” Other right-leaning business leaders have also used the shooting to repeat their support for the former President on social media.
What Happens Next?
The Republican National Convention (RNC) opens this evening in Milwaukee, Wisconsin. That will be another potentially market-moving event.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
