So-called Trump stocks have been on quite a tear recently. Indeed, the breakout stock of the late fall 2021 season continues to rise despite news that would typically trouble many investors. $Digital World Acquisition Corp(DWAC.US)$ first rose to prominence in October 2021 when former President Donald Trump announced that the blank-check company would be serving as the SPAC (special purpose acquisition company) partner for his social media venture Truth Social. The stock most recently made headlines, though, when news broke that the SEC (Securities and Exchange Commission) had launched a probe into it.
Just before this, Canadian video-sharing platform Rumble announced plans to go public by merging with $CF Acquisition Corp VI(CFVI.US)$. Shares of the latter took off after it was confirmed that its partner counted the former president as a member. Naturally, talk quickly turned to Trump stocks amid speculation that CFVI was "the next DWAC."
Trump Stocks Are On the Rise Today
Since markets opened yesterday, DWAC stock has been rising steadily. As of market close, it is up by more than 28% and continues to gain after hours. CFVI stock has followed a similar trajectory today, moving upward all morning and spiking in the afternoon. This pattern has put it in the green by more than 14% for the day.
While there hasn't been any breaking news, we may be about to learn exactly why these Trump stocks have taken off.
What's Going On
A few days ago, it was announced that former Trump White House insider Devin Nunes would be serving as CEO of the Trump Media & Technology Group, the company of which Truth Social will be a subsidiary. While this news didn't do much for Trump stocks, the story is only just starting to develop.
Late this morning, Sharmila H. Viswasam, a day trader and Wall Street Journal contributor who has gained notoriety on $Twitter(TWTR.US)$ for her support of Trump, tweeted the following.
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