On Wednesday, shares of Trump Media, Tesla, and other small-cap companies focused on domestic operations increased after Donald Trump was elected president of the United States for the second time. This result fed hopes of increased domestic growth.
Following a shocking comeback that lasted over four years, Donald Trump crossed the threshold necessary to win the presidency by winning in Wisconsin, which is considered a swing state.
Tesla stock price increased by fifteen percent due to Elon Musk’s support for Donald Trump throughout his election campaign. As Trump has promised, Musk will be appointed to the head of a government efficiency panel.
About thirty percent of the increase was attributable to Trump Media & Technology Group, where the former president holds a majority share. Although their value has roughly tripled since they reached their all-time lows in late September. Also at its most recent valuation, his share was estimated to be worth approximately $5 billion.
Bets that U.S.-focused companies would gain from lower taxes and tariffs that favor domestic production led to the S&P 500 and Dow futures reaching an all-time high. Futures related to the Russell 2000 index, comprised of small-cap companies, also jumped by 6.2 percent.
“The market believes a Trump presidency will unleash animal spirits and give a boost to growth in the short-term through some relief on corporate taxes and deregulation,” said Frédérique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia.
