- Donald Trump's presidential win boosted his social media company, Tesla, and crypto stocks.
- Banking stocks also gained, while clean-energy stocks tumbled.
Donald Trump's victory in the presidential election boosted shares of his social media company, Elon Musk's Tesla, and a slew of cryptocurrency stocks in premarket trading on Wednesday.
The former president's reelection sent renewable-energy stocks tumbling as traders bet his administration would be less friendly in terms of subsidies and regulation.
Shares of Trump Media & Technology Group surged as much as 62% to $55 as investors wagered Truth Social's parent company, which counts Trump as its largest shareholder, would benefit from his second term. The stock — which has Trump's initials, DJT, as its ticker — was trading 37% higher at last check.
If the gain holds, Trump would be about $1.3 billion richer on paper given his near-53% stake in the company.
Tesla stock rose 15% in premarket trading and was poised to open at its highest level in more than a year. Musk, the electric-vehicle maker's CEO, has emerged as one of Trump's most vocal champions and closest advisors.
Crypto stocks jumped on the prospect of a friendlier US regulatory environment under Trump. Coinbase and MicroStrategy both rose 13% in Wednesday's premarket. Bitcoin, the most popular crypto, climbed past $75,000 for the first time on election night before paring gains.
Boost for banks
Conventional financial stocks also gained with Bank of America, JPMorgan, Wells Fargo, Goldman Sachs, Morgan Stanley, BlackRock, Blackstone, and KKR rising between 6% and 9% in the US premarket.
Traders expect Wall Street banks, asset managers, and private equity firms to benefit from tax cuts and deregulation under Trump.
In contrast, clean-energy stocks slid with Plug Power, SunRun, First Solar, and Enphase Energy all dropping at least 10% in premarket trading. Danish wind turbine manufacturer Orsted and rival Vestas fell 10% and 8% respectively in Frankfurt trading.
The declines likely reflect concerns that Trump's reelection will lead to the repeal of the Inflation Reduction Act passed by the Biden administration, which provided large-scale tax credits for renewable-energy providers.
The broader stock market gained before the open with futures underlying the S&P 500 and Dow Jones Industrial Average climbing more than 2.3%, while Nasdaq 100 futures rose 1.8%.