Stocks previously seen as beneficiaries of former President Donald Trump’s prospects for a second term fell on Wednesday after a presidential debate between the candidate and Democratic nominee Kamala Harris.
Trump Media & Technology (DJT) fell as much as 13% after post-debate comments portrayed Trump as defensive while Harris appeared to be getting on her rival’s nerves.
Shares of the company, which operates Truth Social, have been sensitive to Trump’s presidential bid. Shares have fallen nearly 60% since mid-July, when it became clear that President Biden was likely to be replaced as the Democratic nominee.
Shares of private prison companies — which benefit from Trump’s steadfast stance on illegal immigration and support for increased border patrols — also fell Wednesday. GEO Group (GEO), a Boca Raton, Florida-based company that invests in private prisons, fell more than 8%.
CoreCivic (CXW), formerly the Corrections Corporation of America, which owns and operates private prisons and detention centers in the U.S., also fell 6%.
Crypto and banks
Bitcoin (BTC-US) fell sharply during the combative debate and in Wednesday trading, breaking below $57,000 per token. The former president has taken a pro-crypto stance, even calling for a strategic national bitcoin reserve.
Regional banks in particular would benefit if Trump is elected in November, as bank capital and liquidity regulations are expected to be less stringent.
After Tuesday’s debate, shares of Lazard (LAZ), Moelis (MC) and Evercore (EVR), financial companies that provide merger and acquisition services, fell.
Meanwhile, stock prices, which were expected to rise if Vice President Harris were elected president, rose on Wednesday despite the broader market decline.
Among the biggest gainers were those who benefited from the current Democratic administration’s biggest green legislation, the Inflation Reduction Act, which Harris helped pass by a landslide.
First Solar (FSLR) rose 11%, while Enphase Energy (ENPH) rose 5%. SunRun (RUN) also rose more than 7%.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X on @ines_ferre.
