Trump’s Truth Social platform receives major boost in stock prices following weekend events
The stock prices for the Trump Media & Technology Group, the company behind Donald Trump’s Truth Social platform, experienced a surge of 30% at market open on Monday. This significant increase comes after news of a potential assassination attempt on the former president over the weekend.
In a wider market bounce, the Trump Media & Technology Group was one of the most actively traded stocks on Wall Street during Monday’s session. Investors were given their first opportunity to react to the weekend events, with many showing their support for Trump and his platform.
Market commentators have attributed the overall rally in the US stock market to a “Trump trade”. They believe that the potential sympathy vote for the Republican presidential hopeful, who is aiming to return to the White House in November’s election, has increased his chances of winning a second term.
This sentiment has also been reflected in the S&P 500 and the Dow Jones Industrial Average, both of which hit record highs on Monday. Investors are hopeful for investor-friendly policies under a potential second term for Trump, such as extended tax cuts and looser regulation.
Bob Savage, head of markets strategy and insights at BNY Mellon, stated, “The narrative for the day rests on the ‘Trump Trade’ with many investors assuming the weekend events add to the former president being re-elected.” Others have suggested that the shooting may have taken some of the intensity out of the US political landscape.
Meanwhile, on the other side of the Atlantic, the investor mood was less optimistic. The FTSE 100 closed almost 0.9% down at 8,182, with Burberry being the biggest faller at 16%. The luxury brand’s weak trading update prompted them to cancel their dividend, causing a decline in their stock prices. Additionally, the mining and financial sectors also weighed on the market.
Neil Wilson, chief markets analyst at Finalto, wrote, “Trump was already riding high post-debate…the events of the weekend only make it more of a certainty that he wins in November. It also makes it almost impossible to imagine Biden stepping down now.” He also added, “Trump is talking about bringing the country together. We could see a change.”
