Trump Media soars 35% after attack on former president

Since the assassination attempt, Trump is making full use of his own platform after he was banned from X

Trade

Photo: Carlos Herrero via Pexels

17 July 2024

The attack on Donald Trump, the former president of the United States, is not hurting his media company. Trump Media & Technology Group starts the first trading day of the week some 35 percent higher.

Trump escaped death last weekend after a man had shot at the Republican during an election rally in the US state of Pennsylvania. Trump ended up suffering minor injuries to his right ear.

In the attack, which police qualified as attempted murder, a bystander was also killed. Two others were seriously injured.

Among investors, belief has increased after last weekend that the former U.S. president will win the presidential election later this year.

“If Saturday’s events do anything, it’s increase the chances of Trump winning the November election. The markets are clearly showing that today,” said Rob Casey, asset manager, Signum Global Advisors to CNBC.

Trump Media & Technology has a majority stake in the social media platform Truth Social. Trump is making full use of his own platform after he was banned from X, the former Twitter.

The media company dipped deep into the red in recent months due to the succession of lawsuits against Trump. By the end of March, the stock price had risen to $66.22. After the close of trading last Friday, a share was worth just under $31, which was down more than 50 percent compared to March.

Althea Spinozzi, strategist, Saxo, said that markets are now trying to assess what impact ‘Trump Trade,’ which involves deregulation, tax cuts and more fiscal spending, will have on the economy and stock markets. “The assassination attempt has increased the chances of an electoral victory for Trump.”

“During Trump’s previous presidency, the ‘Trump Trade’ led to a rally in U.S. stocks, especially in the technology and financial sectors, rising government bond yields, tighter corporate bond spreads, a stronger U.S. dollar and a rebound in industrial metals,” said Spinozzi.

Spinozzi noted that ‘Trump Trade’ could accelerate economic growth again, possibly resulting in a resurgence of inflation.