Stocks previously seen as beneficiaries of former president Donald Trump’s prospects for a second term tanked on Wednesday after a presidential debate between the candidate and Democratic candidate Kamala Harris.
Trump Media & Technology (DJT) dropped 11% after post-debate commentary described Trump as defensive as Harris appeared to get under her rival’s skin.
Shares of the company, which operates Truth Social, have been sensitive to Trump’s bid for the presidency. The stock has fallen almost 60% since mid-July, when it became clear that President Biden would likely be replaced as the Democratic candidate.
Private prison stocks — a beneficiary of Trump’s staunch position on illegal immigration and support of increased border patrol — also sank on Wednesday. GEO Group (GEO), a Boca Raton, Fla.-based company that invests in private prisons, fell more than 6%.
CoreCivic (CXW), formerly the Corrections Corporation of America, which owns and manages private prisons and detention centers in the US, also dropped nearly 4%.
Crypto and banks
Bitcoin (BTC-US) took a sharp turn lower during the combative debate and into Wednesday trading. The former president has taken a pro-crypto position, even calling for a strategic national bitcoin stockpile.
Banks, particularly regionals, stand to benefit if Trump were to be elected in November, given the expectation of less stringent bank capital and liquidity regulation.
After Tuesday’s debate, shares of Lazard (LAZ), Moelis (MC), and Evercore (EVR), financial firms that provide merger and acquisitions services, dropped.
Meanwhile, stocks seen to benefit if Vice President Harris were elected president rallied Wednesday.
The biggest movers included beneficiaries of the current Democratic administration’s largest piece of green legislation, the Inflation Reduction Act, which Harris helped pass with a tiebreaking vote.
First Solar (FSLR) surged 11%, while Enphase Energy (ENPH) rose 5%. SunRun (RUN) also gained more than 7%.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Source: finance.yahoo.com