Victory juices GOP-adjacent shares
Private prisons, student lenders, for-profit education, and steel companies are all soaring on the results of yesterday’s vote.
You don’t need a CFA to understand what’s driving the stock market today. Donald Trump’s return to White House next January — along with a GOP-controlled Senate, the House still up for grabs — is radically reshaping the outlook for investors, with stocks of companies poised to benefit from Republican and Trump administration priorities posting remarkable gains.
The former president’s close, but decisive, victory has marked an end to one of the more turbulent campaigns in recent memory, a wild ride mirrored by shifts in share prices.
Here’s a look at some of the big gainers on the day. This list is headed up by private prison companies GEO Groupand CoreCivic, then followed by boutique investment banks Moelis & Co. and Evercore.
A smattering of companies that either are having regulatory issues under the Biden administration or have in the past are as follows, from Capital One and Wells Fargo to for-profit education companies Grand Canyon and Perdoceo, formerly known as Career Education Corp.
Another area of the market that’s getting a lift are prices of steel companies. During his first tour in DC, Trump had shown a special proclivity for slapping tariffs on foreign competitors of US steel companies. Those tariffs weren’t just levied on geopolitical rivals like China, but also longstanding allies like Canada and Europe. Either way, such tariffs, which Trump has indicated he would reapply, would help the profit position of domestic steel companies like Nucor, Cleveland-Cliffs, and Steel Dynamics, which are all having their best day in years.
