Stocks Take a Dive After Trump’s Midterm Results

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The general consensus in the business world today was that Donald Trump’s Republican party would do well in the midterm elections, particularly with regards to the House of Representatives. However, after the results started rolling in it became clear that Trump had only managed to maintain control of Congress with a slim majority and in fact lost seats in the Senate. Shares of Truth Social fell over 6% on news that the company’s most anticipated merger partner may have become less likely to agree on terms with them after Trump’s underwhelming performance yesterday.

After former president Donald Trump’s backed candidates performed poorly in high-profile midterm election races, shares of the blank-check firm that planned to list Trump Media and its Truth Social platform on the stock market plunged Wednesday.

The shares of Digital World Acquisition Corp. ended the day Wednesday down more than 19%.

According to NBC News, the Republican Party lost a Senate seat in Pennsylvania when Dr. Mehmet Oz, who had received Trump’s endorsement, was defeated by Democratic Lt. Governor John Fetterman. Both Tudor Dixon and Kristina Karamo lost their races for secretary of state in Michigan. Both received Trump’s backing.

Trump staged sizable rallies the weekend before the election, reading off a list of Republican candidates. Additionally, he assisted Republican candidates running for the Senate in well-publicized races in raising hundreds of millions of dollars.

Trump used the rallies as a stage to practise speeches that appeared to be preparation for his own run for the presidency in 2024. DWAC stock jumped on Monday as Trump hinted at running for president again.

Trump has promised to post solely on the social media site for eight hours before sharing it anywhere else, which might increase traffic to the platform during a future presidential campaign.

DWAC, a special purpose acquisition business, is still facing financial and legal obstacles as it wants to merge with Trump Media & Technology Group, the parent company of Truth Social. As a result, the stock price of DWAC has fallen significantly so far this year.

With the vote being repeatedly postponed, DWAC has been seeking to get sufficient shareholder support to extend the deadline for the merger with Trump Media until September 2023. It will happen once more on November 22.

A criminal investigation into alleged securities crimes involving negotiations between DWAC and Trump Media prior to the announcement of the merger is also ongoing.

At least $138 million of DWAC’s $1 billion in investments had been withdrawn as a result of the delays. The SPAC merger may not happen, according to the former president himself. At a rally in Michigan in October, Trump threatened to take the company private if the financing fell through.

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