As Trump closes in on a victory, markets are rallying in response. According to reports, Trump has claimed wins in three key swing states: North Carolina, Georgia, and Pennsylvania. However, results in Arizona, Wisconsin, Nevada, and Michigan remain unclear at the time of writing.
Following news of a likely Trump win, futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 1.63%, 2.24%, and 1.92%, respectively, at 3:26 a.m. EST on November 6.
With Trump’s potential return, let us look at the stocks and sectors that stand to gain.
- Tesla (TSLA): Shares of the EV major jumped in pre-market trading, as Elon Musk, a Trump supporter who contributed significantly to his campaign, stands to benefit from Trump’s policies. Following the election updates, Musk posted on the social media platform X, “The people of America gave @realDonaldTrump a crystal clear mandate for change tonight.”
- Trump Media & Technology Group (DJT): Trump’s media company rallied in pre-market trading, buoyed by the prospect of his return to the White House. Meanwhile, DJT’s quarterly loss narrowed to $19.3 million in the third quarter, down from a loss of $26.03 million in the same period last year.
- The crypto market welcomed Trump’s probable win, with Bitcoin (BTC-USD) gaining more than 5% at the time of writing. Other crypto stocks, including Coinbase Global (COIN), Robinhood (HOOD), and MicroStrategy (MSTR), were also up in pre-market trading, as Trump is seen as a pro-crypto candidate.
- Furthermore, energy companies such as ExxonMobil (XOM) and Chevron (CVX) gained in pre-market trading, likely anticipating supportive oil and gas policies under a Trump administration.
- Stocks in the banking sector, like JPMorgan Chase (JPM) and Wells Fargo (WFC), traded higher in pre-market trading, as a second Trump term could ease Wall Street regulations, boosting bank returns through more mergers and challenges to Biden-era rules.
- Even companies that run private prisons and detention centers, such as Geo Group (GEO) and CoreCivic (CXW), saw a boost in pre-market trading, as Trump has vowed to deport illegal immigrants and has indicated a commitment to securing U.S. borders.
In short, a Trump win appears set to favor key sectors, with investors reacting to anticipated shifts in regulatory and policy landscapes.
