Trump Media saw a significant surge in its stock price on the first day of trading following an attempted assassination on former President Donald Trump. A federal judge overseeing Trump’s classified documents trial in Florida dismissed the case due to concerns about the special prosecutor’s appointment. Shares in the owner of Truth Social, a social networking site, rose over 35% in early trading. The U.S. Secret Service is investigating how a gunman armed with an AR-style rifle managed to access a nearby roof and shoot and wound the former president during a rally in Pennsylvania. The assailant, who was later killed by the Secret Service, fired multiple shots from an elevated position outside the rally venue, injuring Trump and causing a fatality in the crowd.
In the classified documents trial, U.S. District Judge Aileen Cannon granted a defense motion to dismiss the case, eliminating a prosecution that was considered a major legal threat to Trump. The stock of Trump Media, trading as “DJT,” has been highly volatile since its launch in late March, aligning with meme stocks that fluctuate erratically as retail investors try to time momentum swings. The stock experienced sharp fluctuations following events such as President Biden’s poor debate and Trump’s conviction in a hush money trial where he was found guilty of falsifying business records to influence the 2016 election through illicit payments to a porn actress.
The stock frequently undergoes double-digit percentage changes in a single day, reaching almost $80 in intraday trading on March 26. This contrasts with the 18% year-to-date increase of the S&P 500. Trump Media reported a loss exceeding $300 million in the last quarter, based on its inaugural earnings report as a publicly traded entity.