Trading on Truth Social, the social media platform owned by former President Donald Trump, has been halted on the Nasdaq stock exchange. This decision was made due to a significant plunge in the stock's value.
The stock, which is part of Trump Media & Technology Group, has been experiencing a sharp decline in value. The company's stock price has dropped significantly in recent days.
As a result of the stock's decline, the trading halt was put in place to prevent further market volatility. This is a standard procedure to protect investors and maintain a fair market.
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Trump's Reaction
Trump lashed out at Nasdaq over a routine trading halt in shares of his social media company, Truth Social.
He questioned Nasdaq's right to halt the sale of DJT, the ticker symbol of Truth Social owner Trump Media & Technology Group.
Trump suggested Nasdaq was "taking orders from the SEC", an agency he accused of delaying Trump Media's merger "for political reasons."
Trump threatened to move the listing to the New York Stock Exchange if Nasdaq halted the sale again.
He claimed he would hold Nasdaq and the SEC liable for their actions.
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Trump Criticizes Nasdaq
Trump lashed out at Nasdaq over a routine trading halt in shares of his social media company, Truth Social.
A routine trading halt was triggered by a sudden spike in the stock's price after Trump announced he wouldn't be selling his shares.
The halt was mandated by the SEC, which requires all US exchanges to implement market-wide mechanisms to protect companies and investors from excess volatility.
This type of halt has been in place since 2013 and is used across all US exchanges, including the New York Stock Exchange.
Trump threatened to move the listing to the New York Stock Exchange if Nasdaq continued to halt trading.
However, a market structure expert notes that this would have no effect, as both exchanges follow the same SEC rules.
Trump claimed Nasdaq was "taking orders from the SEC" and accused the agency of delaying Trump Media's merger for political reasons.
A Nasdaq spokesperson said the halt was designed to protect both companies and investors and minimize excess volatility in the wider market.
The halt was lifted twice, first at 2:31 p.m. ET and again at 2:36 p.m. ET.
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Trump Media Stock Halted Amid DJT Share Plunge
Trump Media stock was halted due to a sudden plunge in DJT shares, which had climbed to an intraday high of $33.85 a share before plummeting.
The stock price continued to sink after the pause was lifted, closing at $27.06, down $2.89, or 9.6%, on the day.
The trading halt occurred at 2:42 p.m. Eastern Time and was triggered by a mechanism that detects unusual volatility in the market.
DJT shares traded higher on Wednesday morning, gaining 84 cents, or 3.1%, to $27.90.
The shares have been seen as a proxy for Trump's chances of winning the November 5 presidential election, with DJT swinging upwards when his odds appear to improve.
The volume of trading in DJT stock was elevated on Tuesday, with about 97 million shares trading hands, compared to the average daily trading volume of about 20 million shares over the prior 30 days.
Here's a breakdown of the trading activity on Tuesday:
The trading halt and price decline led to speculation among investors, with some blaming short sellers for the market manipulation.
Stock Performance
The stock of Trump Media, which trades under the ticker symbol DJT, saw a significant spike on Friday after Trump announced he won't be selling shares in the company.
This led to a 25% increase in the stock's value, causing a trading halt to be triggered.
The first halt occurred at 2:26 p.m. ET and was lifted at 2:31 p.m. ET, according to Nasdaq's website.
The stock resumed trading before it was halted again at 2:34 p.m. ET for another five-minute halt.
These types of halts are very common, according to Joe Saluzzi, a market structure expert and co-founder of Themis Trading.
Single-stock trading pauses, also known as “Limit up/Limit down,” are SEC-mandated market-wide mechanisms deployed across all US exchanges.
They are designed to protect both companies and investors and minimize excess volatility in a single stock or the wider market.
These halts have been in place since 2013 across the entire US exchange listed stock market.
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Summary and Facts
Trump Media's stock took a hit on Tuesday, experiencing a five-minute trading halt after the company's shares dropped around 6%.
The stock continued to plummet, with shares down more than 14% at $25.64 as of 3:40 p.m. EDT.
This significant drop in stock value led to Trump's estimated net worth decreasing by $334 million, bringing it down to $5.2 billion.
Trump Media's stock eventually closed down 9.6% at $27.06, a far cry from the gains it recorded earlier in the day.
The company's stock price was still up significantly from about a month ago, when it reached $3.9 billion after Trump declared he would not sell shares in Trump Media.
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