The launch of former President Donald Trump’s Truth Social platform brought not just political intrigue but also a curious hiccup in the financial markets, causing confusion and excitement among investors. On Tuesday, the first day of trading for Trump Media & Technology Group under the symbol “DJT,” several brokerage balances experienced a momentary surge, sending shockwaves through the trading community.
Charles Schwab customers were among those affected, as some saw their brokerage balances skyrocket by hundreds of thousands of dollars. The anomaly occurred as the values of their DJT stock holdings were momentarily inflated, reflecting figures more aligned with the Dow Jones Transportation Average, rather than the actual value of Trump’s company.
Social media platforms buzzed with complaints from bewildered investors who witnessed this temporary surge in their account balances. On Morgan Stanley’s E*Trade platform, similar issues were reported during pre-market hours, further amplifying the confusion surrounding Trump’s new stock symbol.
Trump Media & Technology Group debuted on the market at $70.90 per share, while the Dow Jones Transportation Average began the day at 15,937.73 points. The similarity in ticker symbols, with DJT representing both Trump’s company and the Dow Jones index, likely contributed to the confusion among traders.
One Charles Schwab trader even saw their brokerage balance surge by over $1 million due to the error, according to screenshots shared on social media. While some found humor in the situation, others expressed disappointment at being unable to capitalize on what appeared to be significant gains.
A spokeswoman for Charles Schwab acknowledged the issue, attributing it to a technical glitch that affected certain users on their trading platforms. She assured investors that the problem had been resolved, allowing them to resume trading activities. However, the exact cause of the glitch remained undisclosed.
E*Trade, on the other hand, did not immediately respond to inquiries regarding the incident, leaving users awaiting clarification.
Neither Trump Media & Technology Group nor S&P Dow Jones Indices, the entity overseeing the Dow Jones Transportation Average Index, offered immediate comments on the matter, leaving investors and analysts to speculate on the root cause of the confusion.
While social media users indicated that the issue appeared to have been rectified, many lamented the missed opportunity to cash out what initially seemed like unexpected windfalls.
As the dust settles on this unusual market occurrence, investors are reminded of the unpredictability of financial markets and the importance of maintaining a cautious approach, even in the midst of unexpected events.
Trump’s media company shares rise after stellar debut
Shares of Trump Media & Technology Group rose 11% in premarket trading on Wednesday, a day after their stellar debut.
It was the third most-trending stock on retail trader-focused trading platform Stocktwits and the 10th most-traded on the Nasdaq at 7 a.m. ET, according to LSEG data.
The rise underscores the popularity of Donald Trump driving investor interest, but the platform Truth Social would need to show strong user growth to sustain the trajectory, analysts said.
“There is likely to be significant volatility ahead as a share buying frenzy among his supporters may wane, and investors dig deeper into the fundamentals,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
TMTG, the company formed after merger with blank-check firm Digital World Acquisition Corp, gained 16% to end at $57.99 on Tuesday.
The stock climbed to a record high of $79.38 before ending near the lower end of the price swing that day, valuing the firm at nearly $8 billion. It currently trades at $64.37 a piece.
Truth Social has 8.9 million signups, according to a regulatory filing on Feb. 14, and does not break down the active users figure.
In comparison, X had 238 million daily active users as of June 2022, as per the latest available official data, while Facebook and Reddit had 2.1 billion and 73 million, respectively.
Digital World and the newly listed TMTG have surged about 600% since their merger was announced in 2021, cementing TMTG’s status as one of Wall Street’s so-called meme stocks.