Tesla, prison operators, and other “Trump trades” faced volatility on Tuesday as markets responded to a flurry of executive actions by President Donald Trump shortly after his inauguration for a second term.
Trump outlined broad plans to ramp up oil production, tighten immigration controls, and introduce tariffs, causing mixed reactions among investors.
Trump Media & Technology Group
Shares of Trump Media & Technology Group (DJT.O), the parent company of Truth Social, fell 11.7% following a surge leading up to inauguration day.
Once a favored investment among retail traders during Trump’s presidency, Trump Media now faces competition from his newly launched “memecoin,” $TRUMP, which reached a valuation of over $15 billion within 24 hours.
“When DJT originally went public, it was one of the only ways to directly play Trump enthusiasm in the markets,” said Michael Schulman, Chief Investment Officer at Running Point Capital. “Now, with $TRUMP and $MELANIA crypto, there are more options for investors.”
Tesla and Elon Musk
Tesla shares fell 2.8%, erasing earlier gains, despite surging 70% since Trump’s re-election.
Investors had high hopes for Tesla, given CEO Elon Musk’s growing influence in the administration. Musk, who praised Trump at Monday’s inauguration, now leads the Department of Government Efficiency, tasked with reducing federal spending.
Energy Sector
Trump declared a national energy emergency to boost oil and gas production by slashing regulations and exiting international climate agreements.
Major oil firms like Schlumberger (up 1.7%) and Kinder Morgan (up 2.2%) gained. Nuclear stocks also rose, with NuScale Power jumping 10% after Chris Wright’s nomination as Energy Secretary.
Other Movers
Prison operators GEO Group and CoreCivic slipped slightly, reversing premarket gains, while Chinese ADRs rose as Trump delayed imposing tariffs on China.
Meanwhile, crypto stocks dropped as Bitcoin’s rally cooled, with Coinbase falling 3.6%.
Markets are bracing for more turbulence as Trump’s policies take shape.