New Delhi

Stocks tied to former President Donald Trump saw significant premarket gains on Monday. This followed an assassination attempt at a rally in Pennsylvania.

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The incident left Trump with a minor ear injury. It appears to have bolstered his odds of winning the upcoming presidential election.

Consequently, investors are making strategic bets on assets poised to benefit from a potential Trump victory.

Crypto stocks rally

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Crypto stocks experienced a notable boost mirroring Bitcoin's surge to a two-week high.

Companies such as Coinbase Global and bitcoin miners Riot Platforms Inc. They saw gains between 6 per cent and 7 per cent.

Dan Coatsworth, an investment analyst at AJ Bell noted that traders speculate on the increased likelihood of Trump's return to power.

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Given his pro-crypto stance, this speculation has driven market activity.

"Trump is seen to be pro-crypto. The theory that he is now in a stronger position in the race to the White House has fired up traders" Coatsworth stated.

Trump Media & Technology Group sees dramatic increase

Trump Media & Technology Group (TMTG), is the parent company of the social media platform Truth Social.

The stock soared 67 per cent in premarket trading. Trump who owns a majority stake in TMTG, has seen the stock rise 75 per cent this year.

This rise is largely driven by retail traders' bets on his re-election.

The company's value was approximately $3.8 billion as of late June according to LSEG data.

Gun and prison stocks on the rise

Gun maker Smith & Wesson Brands saw a 2.7 per cent increase.

This trend is often observed in the wake of mass shootings due to anticipated restrictions on firearm availability.

Similarly, prison operators Geo Group and CoreCivic each rose about 7 per cent.

These companies could benefit from Trump's immigration policies.

The policies stressed on stricter enforcement and potentially increased demand for detention facilities.

Tech stocks follow suit

Tech stocks linked to Trump also experienced gains.

Phunware a software developer that worked on Trump's 2020 campaign app, jumped 50 per cent.

Meanwhile, video-sharing platform Rumble favoured by conservative users, increased by 18 per cent.

Despite the dramatic events and market reactions broader market movements remained relatively subdued. S&P 500 futures edged only 0.4 per cent higher.

"Markets were surprisingly calm given the assassination attempt," Coatsworth remarked. This reflected a measured overall response from investors.

(With inputs from Reuters)