Donald Trump’s net worth is crashing as Trump Media stock falls
Donald Trump Stock Sinks Again After Fed’s Rate Cut
Stocks dropped lower on Wednesday, September 18, 2024, following the Federal Reserve’s announcement of a half-point rate cut. The Federal Reserve slashed short-term interest rates by 0.5%, bringing the target range to 4.75% to 5%. This decision triggered an immediate reaction across major stock indexes, which initially surged but soon reversed course. The Dow Jones Industrial Average jumped by 375 points before sliding by the end of the day, while the S&P 500 and Nasdaq also closed 0.3% lower.
Donald Trump’s Media & Technology stock was hit hard once again. It tumbled by more than 3%, marking another day of underperformance. The stock closed at a session low of 15.41, dropping below recent gains. This marks its lowest level since November 2023, furthering a difficult year for Trump’s company. The stock has seen a sharp decline since mid-July when it failed to maintain momentum following a brief rebound. Despite a 31% surge in mid-July, the stock has since plummeted by 52%, while the S&P 500 has risen 3% during the same period.
The market experienced heightened volatility throughout the day, influenced by the Fed’s decision and investor uncertainty about the broader economy. The Fed’s rate cut was aimed at easing concerns about a potential recession while maintaining a careful balance with inflation targets. This move comes amid growing confidence that inflation is on its way down, nearing the Fed’s 2% goal.
In terms of stock market internals, volume rose on both the Nasdaq and NYSE, signaling a mild distribution day. This means that declining stocks outnumbered advancing ones, reflecting a cautious mood among investors. Sectors such as solar, home furnishings retail, metal ores, and wood products saw gains of 3% or more, outperforming the broader market.
Meta Platforms (META), part of the Leaderboard portfolio, moved past a trendline buy point of 520, showing a cup-with-handle pattern that could indicate further gains. Another stock, Carpenter Technology (CRS), which specializes in aerospace materials, managed to break through stiff resistance near the 148 mark. The stock has been on a bullish trend since April, steadily climbing from a base of 72. However, its uptrend was tested as it approached the 148.94 buy point.
Meanwhile, Google’s parent company Alphabet (GOOGL) saw a sixth straight day of gains. Alphabet’s stock has been slowly climbing after a favorable antitrust ruling by the European Commission. It’s still not near a proper buy point, but its steady progress above key technical levels such as the 200-day moving average has kept it on investors’ radars.
In contrast, Trump Media continues to underperform. The stock’s relative strength rating of 8 indicates that it has only outperformed 8% of companies in the IBD database over the past 12 months. Analysts note that the stock faces significant overhead supply from willing sellers, limiting its ability to rebound. Since the start of the third quarter, Trump Media has been on a steep decline, making it one of the worst-performing stocks in its sector.
While many stocks struggled, some outperformed the market. The Russell 2000 index, which tracks smaller companies, managed to close with a slight gain despite earlier losses. At the same time, homebuilder and construction stocks, which had seen a strong run in recent sessions, cooled off after the Fed’s announcement.
Investors remain cautious as they digest the implications of the Fed’s move. While the rate cut is intended to stabilize the economy, there is still uncertainty about its long-term effects on inflation and growth. Crude oil prices remained steady, with December futures dipping slightly to $69.83 a barrel, while gold futures edged up to $2,597 an ounce.
As markets adjust to the Fed’s rate cut, analysts are keeping a close eye on whether stocks like Donald Trump’s Media & Technology can regain momentum. So far, the outlook remains bleak, with the company’s earnings continuing to disappoint. Over the past year, Trump Media has lost $2.80 per share on total revenue of just $3.5 million. Despite this, the stock remains a focal point for many investors due to its association with the former president.
In the broader market, growth stocks such as TG Therapeutics (TGTX) have shown resilience. TG Therapeutics announced positive results from a study of its multiple sclerosis treatment, leading to a more than 2% rise in its stock price. This success offers a glimpse of optimism in a market that has been shaken by economic uncertainty.
With the Fed’s rate cut now in effect, the focus shifts to how the market will respond in the coming weeks. Many expect volatility to persist as investors weigh the impact of monetary policy on inflation, employment, and the broader economy. Meanwhile, Donald Trump’s Media & Technology stock continues to struggle, with little sign of a turnaround on the horizon.
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