Photo: Bret Hartman / TED / CC BY-NC 2.0
Following Donald Trump’s victory in the 2024 United States presidential election, the world’s wealthiest individuals saw their fortunes skyrocket, collectively adding a record $64 billion in a single day.
This surge was driven by a sharp rise in the stock market, as investors anticipated that Trump’s pro-business policies, including deregulation and tax cuts, would benefit large corporations and their wealthy owners.
Elon Musk, a prominent supporter of Trump, has emerged as the biggest beneficiary of the post-election financial surge, amassing $70 billion. The majority of Musk’s wealth is tied to his Tesla shares, which have experienced a remarkable 39% surge over the four trading days following the election. This surge has propelled Tesla’s market capitalization beyond $1 trillion.
Musk’s net worth has climbed to around $320 billion, as reported by Forbes, positioning him approximately $90 billion ahead of Larry Ellison, who is now the world’s second-richest person. The post-election 10% rise in Oracle’s stock has boosted Ellison’s net worth by around $20 billion.
Coinbase CEO Brian Armstrong has seen his net worth flourish by approximately $4.5 billion. This surge is largely driven by the significant rise in Coinbase shares, which jumped 20% on Monday, cumulatively gaining 67% since Tuesday.
The day after the election, Jeff Bezos, who recently defended his decision to withhold the Washington Post‘s endorsement of Vice-President Kamala Harris, saw his wealth soar by $7.1 billion. Other billionaires, including Bill Gates, Steve Ballmer, Larry Page, Sergey Brin and Warren Buffett, also experienced significant growth in their fortunes.
Following Trump’s victory, his social media venture, Truth Social, experienced a significant stock increase of up to 35%.
The upbeat sentiment spread to international markets, with Asian indices such as Japan’s Nikkei 225 and South Korea’s Kospi showing gains. However, Hong Kong’s Hang Seng index bucked the trend, declining due to worries about possible tariffs on Chinese exports. European markets also benefited, with Britain’s FTSE 100 rising over 1%. The positive mood was further reflected in financial indicators, as the VIX Index, which measures market volatility, dropped below 16, while the U.S. dollar strengthened against key currencies.
Sectors That Saw The Biggest Boost
Investors are optimistic about a business-friendly climate under a potential second Trump administration, anticipating policies that could further fuel market growth. These expected policies include tax reductions, deregulation, a surge in mergers and acquisitions and an expansion of domestic oil production.
Bitcoin’s recent record-setting ascendancy has propelled it near $90,000, while simultaneously boosting the overall cryptocurrency market value, amid Trump’s endorsement of these digital assets. Bitcoin has surged approximately 32% since November 5, reaching an all-time peak of $89,599 on Tuesday.
Following Trump’s win, the banking sector anticipates a more relaxed regulatory environment. This contrasts with the President Joe Biden administration’s approach, which had advocated for stricter capital requirements designed to protect major U.S. banks from potential collapse during periods of financial strain.
Proponents claim deregulation reduces business costs, encouraging investment and expansion that can lead to job creation.
JPMorgan Chase, the largest bank in the U.S., saw its stock value increase by 11.5% on Wednesday. Concurrently, Discover Financial Services experienced a significant stock surge of almost 20% the day after the election. This boost was driven by optimism that its planned merger with Capital One, whose shares also rose by 15%, would face fewer regulatory hurdles under a Republican administration. The merger, initially proposed in February, has been stalled due to scrutiny from financial regulators.
Increased M&A activity often leads to job cuts due to consolidation and efficiency measures. While this can benefit shareholders, it frequently results in workforce reductions.
Stocks of private prison and detention center operators also saw an uptick in anticipation that Trump will implement stricter policies on illegal immigration, potentially leading to increased detentions of migrants who enter the country unlawfully. Two major players in the private prison sector, GEO Group and CoreCivic, saw their share prices skyrocket, with GEO Group jumping by 42% and CoreCivic rising by 29% on Wednesday.
Industries Facing Losses
Retailers and toy manufacturers experienced declines in their stock prices, likely linked to concerns over Trump’s proposed tariffs, which could lead to higher prices for the products they sell, many of which are produced overseas.
Tariffs can result in layoffs in sectors dependent upon imported materials or those hit by retaliatory measures from other nations.
Additionally, green energy stocks experienced significant drops, reflecting expectations that his administration will favor fossil fuel production over environmentally friendly energy sources. It’s widely anticipated that Trump will move to eliminate the tax credits and other incentives for renewable energy that were implemented under Biden’s Inflation Reduction Act, slowing down growth in renewable energy sectors, which could potentially lead to job losses.
Source: Forbes
