Stocks previously seen as beneficiaries of former president Donald Trump's prospects for a second term tanked on Wednesday after a presidential debate between the candidate and Democratic candidate Kamala Harris.
Trump Media & Technology (DJT) dropped as much as 16% in reaction to the encounter in which Harris appeared to get under her rival's skin.
Shares of the company, which operates Truth Social, have been sensitive to Trump's bid for the presidency. The stock has fallen almost 60% since mid-July, when it became clear that Harris could replace Biden as the Democratic candidate.
Private prison stocks — a beneficiary of Trump’s staunch position on illegal immigration and support of increased border patrol — also sank on Wednesday. GEO Group (GEO), a Boca Raton, Fla.-based company that invests in private prisons, fell more than 8%.
CoreCivic (CXW), formerly the Corrections Corporation of America, which owns and manages private prisons and detention centers in the US, also dropped 6%.