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Economy

Trump's Election Sparks Unprecedented Surge in Billionaire Wealth

13:12

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In a remarkable financial turnaround, the wealth of the world's ten richest individuals surged by an astonishing $64 billion following Donald Trump's recent election victory. This unprecedented increase, recorded by the Bloomberg Billionaires Index, marks the largest daily gain since the index's inception in 2012.

Leading the charge was Elon Musk, whose fortune ballooned by $26.5 billion to reach a staggering $290 billion. This substantial rise was primarily fueled by a dramatic increase in Tesla's stock price, reflecting investor optimism about Trump's pro-business policies. Musk, a vocal supporter of Trump during his campaign, holds a significant 13% stake in Tesla.

The stock market rally was not limited to Musk alone; other tech titans also reaped substantial benefits. Jeff Bezos, founder of Amazon, saw his wealth increase by $7 billion, bringing his total to nearly $230 billion. Larry Ellison, chair of Oracle Corporation and a historical Republican supporter, added nearly $10 billion to his fortune, now totaling $193 billion. Additionally, Microsoft co-founder Bill Gates and Google co-founders Larry Page and Sergey Brin also experienced notable gains.

The surge in wealth among these billionaires can be attributed to a broader rally in U.S. stocks as investors reacted positively to the prospect of reduced taxes and deregulation under Trump's administration. Prominent figures from the tech industry, including Mark Zuckerberg of Meta and Apple’s Tim Cook, publicly congratulated Trump on his victory, further signaling confidence in the new administration.

However, not all were beneficiaries of this economic windfall. French luxury goods magnate Bernard Arnault saw his wealth decline by nearly $3 billion. Similarly, Zuckerberg's fortune dipped slightly by $81 million but remains robust at $202 billion. The Facebook CEO has faced criticism from Trump in the past, adding an element of tension to their relationship.

Analysts attribute the stock market's positive response to what they call a "pure Maga trade," referencing Trump's "Make America Great Again" slogan. Neil Wilson, chief analyst at Finalto, noted that investors were buoyed by expectations of lower taxes and deregulation across various sectors, including banking and energy.

As the financial landscape adjusts to Trump's victory, it remains to be seen how these changes will impact broader economic conditions and investment strategies moving forward.

Wealth increases from 5 November to 6 November 2024

1. Elon Musk $290bn (+10.1%)

2. Jeff Bezos $228.3bn (+3.2%)

3. Mark Zuckerberg $202.5bn (0%)

4. Larry Ellison $193.5bn (+5.4%)

5. Bernard Arnault $173.2bn (-1.6%)

6. Bill Gates $159.5bn (+1.2%)

7. Larry Page $158.3bn (+3.6%)

8. Sergey Brin $149.1bn (+3.6%)

9. Warren Buffett $147.8bn (+5.4%)

10. Steve Ballmer $145.9bn (+2%)

Source: Bloomberg