Which stocks are benefitting most from ‘Trump bump’?

President-elect Donald Trump’s poll victory last week sent major US stock indexes surging to new records, with Tesla and Bitcoin among the biggest winners so far.
The price of Bitcoin briefly surpassed $93,000 for the first time on Wednesday as the cryptocurrency continued its rise after Mr Trump’s election, overtaking Saudi Aramco as the world’s seventh-largest asset by market cap at $1.833 trillion.
Bitcoin and Tesla are among a number of sectors and companies to benefit from the so-called Trump bump that are expected to reap the rewards of his new administration.
Tesla has been one of the biggest winners since the election, with billionaire owner Elon Musk’s backing of Mr Trump paying off big for the electric vehicle company.
Even after a slight post-election dip on Tuesday, Tesla shares have still surged by more than 32 per cent since election day.
That has also led to a huge increase in net worth for Mr Musk, already the world’s richest person. As of Wednesday, Mr Musk’s net worth had risen to $319 billion, almost $90 billion more than the world’s second-richest man, Jeff Bezos.
Mr Musk was one of Mr Trump’s most vocal surrogates during the final months of the campaign trail and was rewarded by being tapped to co-lead a new Department of Government Efficiency.
He is said to have a strong influence on the new administration, reportedly joining a call between Mr Trump and Ukrainian President Volodymyr Zelenskyy last week. He was also expected to join Mr Trump and Republicans on Capitol Hill on Wednesday.
Mr Trump’s election has been a huge boost to the cryptocurrency industry. The president-elect, once a sceptic, has since embraced the industry and now also owns a crypto business, World Liberty Financial.
Mr Trump previously said he wants the US to become the “crypto capital of the planet” and also raised the possibility of establishing a strategic bitcoin stockpile.
Crypto traders are also emboldened by the possibility of a new head of the Securities and Exchanges Commission. Current chairman Gary Gensler, one of the crypto industry’s biggest rivals, is expected to resign before Mr Trump takes office.
Bitcoin is not the only cryptocurrency to rise under these hopes. Ether, the second-largest cryptocurrency by market cap, has jumped 37 per cent since election day. Dogecoin is up 156.2 per cent.
Shares in jail stocks have risen since Mr Trump vowed to follow through with a mass deportation plan that could affect millions of undocumented immigrants.
“We expect the incoming Trump administration to take a much more aggressive approach regarding border security, as well as interior enforcement, and to request additional funding from Congress to achieve these goals,” Geo Group executive chairman George Zoley said during an earnings call last week.
Shares in Geo Group, the largest private prisoner operator in the US, have risen by 67.8 per cent since election day.
Mr Zoley said the incoming administration will bring a “potential sea change” for the industry.
CoreCivic, a company that owns and manages private prisons, has also experienced a recent increase in share price. The company’s stock has risen by 61.12 per cent.
Mr Trump’s return to the White House is also seen as a boon to big banks who could benefit from less regulation and more domestic investment.
Goldman Sachs and Bank of America shares have increased by the highest amount since election day at 14.1 per cent and 10.5 per cent, respectively.
Financial Trade Commissioner chairwoman Lina Khan’s future is seen as being in jeopardy. Ms Khan’s FTC has been aggressive in blocking several mega mergers seen as anti-competitive. Her replacement, as well as other antitrust appointments, could signal less regulation from agencies that would benefit banks and other companies.
The future of the Federal Reserve’s proposed capital requirements – also known as the Basel III Endgame – is also in doubt. The Fed has already drastically lowered the capital the nation’s largest banks would be required to hold after a fierce lobbying effort.
Shares in JP Morgan Chase and Citigroup have risen by 9.8 and 10.5 per cent, respectively.