Stocks associated with Trump’s policies, often referred to as ‘Trump trades,’ are seeing a decline.
For instance, private-prison operators like GEO Group Inc. and CoreCivic Inc. experienced significant stock price fluctuations following the Biden-Trump debate in June, with prices rising sharply in July before falling back to their previous levels.
Gunmakers Sturm Ruger & Co. and Smith & Wesson Brands Inc. followed a similar pattern. Trump Media & Technology Group Corp., Trump’s social-media company, saw its shares climb above $40 in mid-July but is now trading around $22.
Government bonds and global currencies are more difficult to analyze in this context, as they react to broader economic and geopolitical developments. Concerns over trade wars and higher tariffs, risks closely tied to a Trump win, have largely dissipated.
The US dollar, which peaked in June, has since declined. While Trump is viewed as a strong dollar candidate, the drop is also attributed to the Federal Reserve cutting interest rates.