- Trump Media & Technology Group shares up over 180% this year.
- Market manipulation concerns prompt investigation request.
OUR TAKE
The shooting at Trump’s rally has underscored the fragile nature of political stability and its profound impact on financial markets. The incident serves as a reminder of the importance of preparedness and resilience in investment strategies. As the election approaches, the markets will closely watch political developments, balancing the potential benefits of a pro-market administration against the risks of increased volatility and fiscal instability.
—Doris Du, BTW reporter
The stock of Trump Media & Technology Group, the parent company of Truth Social, experienced notable volatility after former President Donald Trump was found guilty on all 34 counts in a criminal trial. The shares saw significant swings, reflecting the market’s reaction to the legal outcomes.
What happened
During a campaign event, Trump was shot in the ear, but he quickly recovered and resumed his activities. The attack has drawn comparisons to the 1981 assassination attempt on President Ronald Reagan, which significantly boosted Reagan’s poll numbers. The shooting could similarly influence the tight race between Trump and President Joe Biden, potentially altering the dynamics of the November 5 election.
After a jury convicted Donald Trump on all 34 counts in a criminal trial, the shares of Trump Media & Technology Group, the company behind Truth Social, experienced notable volatility. The stock price fluctuated significantly, reflecting the market’s mixed reactions to the news. Despite this turbulence, Trump Media’s shares have risen over 180% this year, demonstrating a high level of investor interest and speculation amidst the former president’s ongoing legal battles.
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Why it’s important
The conviction marks a historic moment, influencing investor sentiment. As Alan Dershowitz commented, this case represents a “war of weaponisation” within the justice system. Despite the legal turmoil, Trump Media’s shares have risen dramatically, indicating strong market interest and speculation.
The incident has significant implications for financial markets. Prior to the shooting, markets had responded positively to the possibility of a Trump presidency, with the dollar strengthening and expectations for a steeper U.S. Treasury yield curve rising. Analysts like Rong Ren Goh from Eastspring Investments believe these trends will continue. The situation has also brought attention to Trump’s policies, which include a hawkish trade stance, deregulation, and potential tax cuts, all of which could influence market performance and economic outlook.
Persona perspective
This scenario is more than just a financial story; it reflects the complex intersection of politics, law, and economics. For supporters, Trump’s legal battles evoke a sense of resilience and defiance, while critics see it as justice served. This duality in perspectives fuels the stock’s volatility, highlighting the deep divisions within society.
