Trump Media rides sympathy wave amid sharp equity rally
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Trump sympathy wave triggers equity rally
The recent attempted assassination of former President Donald Trump has indeed triggered a notable reaction in the financial markets. Investors seem to be rallying around what is being termed the “Trump trade,” anticipating that his potential return to the White House could bring about tax cuts, higher tariffs, and looser regulations. This has led to a rise in stock futures and a steepening of the yield curve, with long-dated bonds leading losses.
By S Jha
New Delhi, July 15: A day after an assassination bid on former US president Donald Trump, Trump Media and Technology traded with gains of a whopping 65 per cent on NASDAQ. In the afternoon session, the owner of Truth Social was trading with gains of 35 per cent.
The sharp rally in the stock of Trump Media & Technology on Monday came amid soaring prospects of Trump in the November election. Trumps’ media company is a loss-making venture. Analysts describe Trump Media & Technology as a highly volatile stock.
The first day of the trade after the failed assassination bid on Trump brough intense equity rally on the US bourses. Dow Jones was trading higher.
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NASDAQ also extended gains. All the US bourses were trading with gains in the afternoon session on Monday.
A key Republican convention began on Monday. Trump is widely expected to accept the Republican nomination for the presidential election.
Analysts are linking the equity rally to the prospects of Trump winning the November election. The incumbent US President, Jo Biden, is seen struggling.
The equity markets are drawing confidence from Trump track record of deal making. Under the watch of Trump, Abraham Accords was signed in the Middle East.
Trump is also seen to have good equations with Russian President Vladimir Putin. Ukrainian President Volodymyr Zelenskyy expressed his scepticism on November election during the NATO Summit in Washington.
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Analysts in the US believe that Trump in presidency will help cool off global hotspots. He was industry friendly in his first term. Trump is also a protectionist.
Trump had started the trade war with China in 2017. He had slapped dumping duties on several of the Chinese imports in the US.
Biden, in contrast, saw the Middle East tension. Israel’s bombings in Gaza continue unabated. The Abraham Accords is literally now in cold freeze. Israel and Iran nearly came to a war.
With Trump in the office, analysts believe that the Middle East tension may ease. They also see opportunity for ebbing of the Ukraine War.
Protectionist Trump may also come out with tough terms of engagements on trade with India. But analysts believe that India may gain from Trump’s anti-China rhetoric.
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