Kyle Rodda, a senior market analyst at Capital.com, noted that the “Trump trade effect” reflects market pricing based on expectations of a Trump presidency agenda. This includes anticipated higher inflation, increased break-even rates, higher yields, and a steeper yield curve due to expectations of greater deficit spending in the United States.
Prior to the shooting incident, various analysts and economists debated the potential impacts of a Trump presidency on the market, both positive and negative.
Investors are currently reevaluating Trump’s electoral prospects, considering potential market implications.
During Trump’s campaign event in Pennsylvania on Saturday, an attempted assassination resulted in a minor ear injury. Although the attempt failed, questions arose regarding its impact on the market.
Following the shooting, Bitcoin’s price reacted immediately, rising from approximately $60,000 per BTC to about $62,760 per BTC by 6 AM on Monday, June 15, 2024. Gold, a traditional safe-haven asset, also saw its price increase to about $2,400 per ounce.
Investors are increasingly looking at gold and Bitcoin as hedging options against potential political instability in the US.
Trump’s media company saw a significant surge of up to 70% in pre-market trading on Monday, eventually rising by 48%. The company owns Trump’s Truth Social platform, which debuted on the stock market in late March.
Investors speculate that a potential Trump victory could lead to deregulation, influencing NASDAQ futures by 0.3 to 0.4 points.
Despite US political uncertainties, early Monday trading showed little to no effect on the stock market.
However, Team Spectra believes that the weekend assassination attempt on Trump will leave a lasting mark on the markets.