- Trump Media shares fall 7% on Friday.
- Donald Trump appears to have won the CNN debate against President Biden on Thursday.
- Trump has a slight lead in the polls, but DJT is still falling.
- President Biden had several verbal stumbles during the debate.
After opening almost 9% higher just below $40, shares of Trump Media & Technology Group (DJT) are down about 7% after lunch in New York. The meme stock that represents former President Donald Trump’s social media company, TRUTH Social, is always volatile, but many traders thought Trump’s perceived victory in the debate would help the stock price hold on to gains.
The broader market was upbeat after the United States released Personal Consumption Expenditures (PCE) data on Friday, showing inflation continuing to decline in line with consensus. This made the market expect interest rate cuts before the end of the year by the Federal Reserve (Fed). The NASDAQ Composite, S&P 500 and Dow Jones, which had posted healthy gains in the morning session, are largely flat at the time of writing, 1:00 PM EST.
Trump Media Stock News
The general consensus after the debate between Donald Trump and President Joe Biden on CNN on Thursday night was that Trump won the debate because of Biden’s verbal stumbles.
NBC writes “Biden stumbled repeatedly, sounding hoarse, leaving many of his allies panicking about his chances in November.” NBC showed that foreign policy was the main topic of the debate, and Trump spoke longer on the topic than Biden. Both candidates spoke for the same amount of time on the issue of democracy, the second-largest focus, while Biden dominated the third-largest issue, the economy.
Slate.com, a platform usually sympathetic to Democrats, even led with an article about how Democrats could replace Biden on the ticket before the Nov. 5 election. However, most analysts think that option is unlikely, and Trump said he expects Biden to remain the nominee in November.
However, most outlets said Trump was misinformed and lied about several issues. Polls have been very close in June, so the candidates could use any advantage at this point. FiveThirtyEight’s poll of polls has Trump leading on June 28 with 41.1%, Biden close behind with 40.9% and Robert F. Kennedy, Jr. with 9%.
The S&P 500 FAQs
The S&P 500 is a widely followed stock index that measures the performance of 500 public companies and is considered a broad measure of the US stock market. The influence of each company in the calculation of the index is weighted based on market capitalization. This is calculated by multiplying the number of listed shares of the company by the share price. The S&P 500 Index has achieved impressive returns: $1.00 invested in 1970 would have produced a return of nearly $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
Companies are selected by committee, unlike other indexes where they are included based on set rules. They must still meet certain eligibility criteria, the most important of which is market capitalization, which must be at or above $12.7 billion. Other criteria include liquidity, domicile, market capitalization, industry, financial viability, length of listing, and representation of sectors of the U.S. economy. The nine largest companies in the index account for 27.8% of the index’s market capitalization.
There are several ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFDs) to place bets on the price direction. Additionally, index funds, mutual funds, and exchange-traded funds (ETFs) that track the S&P 500 can be purchased. The most liquid of the ETFs is the London Stock Exchange ETF. The most liquid of the ETFs is the State Street Corporation SPY. The Chicago Mercantile Exchange (CME) offers futures contracts on the index, and the Chicago Board of Options (CMOE) offers options, as well as ETFs, inverse ETFs, and leveraged ETFs.
There are many factors that drive the S&P 500, but it is primarily the aggregate performance of the companies that comprise it, as revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, as they influence investor confidence, which if positive, boosts earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500, as it affects the cost of credit, on which many companies rely heavily. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Trump Media Stock Forecast
Trump Media lost about 7% on Friday afternoon after opening at an intraday high of $39.94. Now DJT is holding near $34 per share. Q1 support at $32 is close, and that price level is supported by the 200-day Simple Moving Average (SMA) just below. If that doesn’t work, then the range lows near $23 and $26 from April and June, respectively, could come to the rescue.
DJT stock is in a downtrend as it is trading below the 50-day and 100-day SMA. Currently trading near $43, both must be overcome to put DJT stock in a bullish position.
DJT Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
