While news of Donald Trump's indictment sent shockwaves across the country, some stocks connected to the former President rose sharply amid conservative outrage.
On March 30, a long investigation over Trump's business dealings reached a major new milestone when a New York grand jury hit the former President with approximately 30 criminal charges largely connected to $130,000 in hush money paid to porn star Stormy Daniels.
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DON'T MISS: Trump Grand Jury Indictment Will Have Unforeseen Consequences
The decision was quickly labeled a "witch hunt" by both Trump himself and his political allies and supporters. As first reported by CNN, shares of certain companies adjacent to Trump saw an immediate boost in value after some conservatives rushed to buy them as a show of support.
Phunware, Rumble Stocks Close High Amid Announcement
A software company that developed Trump's campaign website when others wouldn't, Phunware (PHUN) soared by more than 10% at the end of March 31.
In 2021, conservative video-sharing platform Rumble (RMBL) became the first publisher to feature the Truth Social social media platform Trump launched after getting banned from Twitter. At one point on March 31, shares of Rumble were up by more than 7%.
This is also connected to a March 30 earnings report in which Rumble announced a 579% revenue spike to $20 million. As the dust around both announcements settled, Rumble stock closed up 2.54% at $6.06 on Friday.
Another company that saw a sharp boost in shares is Digital World Acquisition Corp. (DWAC) . Established specifically to merge with Truth Social and take it public, Digital World shares were at one point up by nearly 10%. By the end of Friday, stock closed at $14.05, up 7.58%.
When at their recent highest, the spike in DWAC stock resulted in a gain of approximately $100 million for Trump.
"The stocks have moved significantly before when Trump has been in the spotlight," CNN reported. "For example, DWAC shares soared after Republicans won the House of Representatives in November 2022 (though shares have fallen 55% since then.)
The Indictment Is Likely To Have A Wider Impact On The Stock Market
While these increases reflect the immediate tumult and conservative indignation over the indictment, the wider fallout is expected to have a much bigger impact on the stock market.
Along with overall disarray and similar jumps that may occur during key moments in the trial to follow, a polarized Congress can also spell trouble for the markets during an economy already burdened by inflation and high interest rates.
"Trump's indictment might not seem like much of an issue for the stock market," Ben Levisohn wrote for Barron's. "It comes, however, at a fraught moment. [...] There are just too many differences between the parties [...] but the decision to indict the man who is effectively the face of the GOP for many in the party suggests that a middle ground will be even harder to find."
On Trump's end, the former president is now widely expected to turn himself in for a court arraignment next Tuesday, April 4. Sources close to the matter also widely believe that Trump will enter a not guilty plea at Manhattan's New York State Supreme courthouse -- the case is both historic and unprecedented as Trump is the first former president to face criminal charges.
