Trump's Projected Victory Sends Stock Market Soaring
Former President Donald Trump's projected return to the White House has caused a significant rally in the stock market, with several companies experiencing substantial one-day jumps.
Companies managing private prisons and detention centers saw their stocks soar on the expectation that Trump will detain more migrants who cross into the country illegally. This would be a reversal from the Biden administration's policy of allowing asylum-seeking migrants to legally work in the country while awaiting trial. Shares of GEO Group (GEO) and CoreCivic (CXW) surged 42% and 29% respectively.
Elon Musk's support for Trump's campaign is expected to be rewarded with more favorable policies for his companies, including Tesla, SpaceX, X, and xAI. Tesla (TSLA) shares closed 15% higher Wednesday, while competing companies like Rivian (RIVN) and Lucid (LCID) plunged.
Trump's victory is expected to result in looser banking regulation, a welcome change for banks that were facing stricter capital requirements under the Biden administration. Shares of Discover Financial Services (DFS) popped nearly 20%, while Capital One (COF) shares rose 15%.
A Trump administration is generally expected to be more supportive of mergers and acquisitions compared to the Biden administration, which has sought to block many. This news caused Spirit Airlines (SAVE) shares to rise 9%, while JetBlue (JBLU) shares closed 4% higher.
Trump's pro-cryptocurrency stance has boosted the sector, with Bitcoin reaching a new record high and crypto-associated stocks like Coinbase (COIN) jumping 31%.
On the other hand, retailers and green energy stocks saw declines due to fears about Trump's tariffs and his expected prioritization of fossil fuel energy production. Companies like Five Below (FIVE), Wayfair (W), Dollar General (DG), Sunnova (NOVA), and Sunrun (RUN) all experienced significant drops.
It remains to be seen whether these gains will last, as Trump's policies could also have negative consequences for some companies. However, the initial market reaction to his projected victory has been overwhelmingly positive.