Trump Media & Technology Group (DJT) stock was briefly halted by volatility in late afternoon trading Tuesday as investors braced for more wild swings as Election Day begins in the United States.
Shares quickly erased a 15% gain and reversed a double-digit percentage rise on Monday to start the week. The stock recovered somewhat heading into the close, rising nearly 5%.
Shares suffered their biggest percentage decline last week and closed down about 20% to end the five-day period on Friday, shaving about $4 billion off the company’s market value. Still, the stock has more than doubled from its September lows.
The recent price movement comes as investors await the results of the presidential elections between Republican candidate Donald Trump and Democratic candidate Kamala Harris.
Volatility in stocks is expected to continue. One investor warned that if Trump loses the election, DJT shares could fall to $0.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance Motivators.
Read more: Trump vs. Harris: 4 ways the next president could affect your bank accounts
Tuttle, who currently holds put options on the stock, said the stock’s trajectory hinges on the “buy the rumour, sell the truth” trading strategy.
“I imagine the day after he wins, you’ll see a decline in that,” he said. “If he loses, I think the score will go to zero.”
DJT has taken on “a life of its own,” said Steve Sosnick, chief strategist at Interactive Brokers.
“The stock has been choppy on the way up, and when a stock is choppy one way, it tends to be choppy the other way,” he said on a call with Yahoo Finance last week.
Before the recent volatility, shares of the company — home to the Republican candidate’s social media platform, Truth Social — had been rising steadily in recent weeks as domestic and offshore betting markets shifted in favor of a Trump win.
Prediction sites like Polymarket, Expect itand everything All of them showed Trump’s presidential chances ahead of Democratic nominee and current Vice President Kamala Harris. However, that lead narrowed significantly over the weekend as new polls showed Harris in the clear Beating Trump in Iowa Which historically voted Republican.
As betting markets tighten, National opinion polls Both candidates appear in a nearly deadlocked race. Opinion polls in key battleground states such as Pennsylvania, Michigan and Wisconsin, which are likely to decide the fate of the elections, show very slim margins.
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