Stock Market Crash Alert: Mark Your Calendars for July 11


  • A Manhattan jury just found former President Donald Trump guilty on all 34 counts of falsifying business records.
  • Investors and politicians are now playing the waiting game ahead of the July 11 sentencing.
  • The stock market has slipped following the news, including Trump Media and Technology (DJT), which is down more than 4% on the results.
stock market crash - Stock Market Crash Alert: Mark Your Calendars for July 11

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On Thursday, a Manhattan jury found former President Donald Trump guilty on all 34 counts of falsifying business records in his long-standing hush-money criminal trial. Investors and politicians everywhere are eagerly awaiting the July 11 sentencing hearing to find out whether Trump will see jail time for his convicted felonies. Will the stock market crash?

Well, if today’s drop is any indicator, maybe.

The stock market is well in the red today following yesterday’s bombshell news. Indeed, the S&P 500 is down about 0.5% heading into the afternoon while the Nasdaq Composite is eyeing a 1.2% loss.

This week’s guilty verdict concludes an indictment against Trump first launched in March 2023. Prosecutors alleged that Trump was privy to an unlawful conspiracy to undermine the 2016 election. They also accused Trump of being part of an “unlawful plan to suppress negative information,” which included a $130,000 hush-money payment to adult film star Stormy Daniels.

Predictably, Trump isn’t happy with the trial results.

“This was a rigged, disgraceful trial,” Trump told reporters after leaving the courtroom. “The real verdict is going to be Nov. 5 by the people, and they know what happened here, and everybody knows what happened here.”

With this week’s news, Trump becomes the first former president to be charged with a felony in U.S. history.

What Does Trump’s Guilty Verdict Mean for a Stock Market Crash?

Trump’s direct ownership in the stock market is limited to his media company, Trump Media and Technology (NASDAQ:DJT), which is unsurprisingly down today. Shares of DJT stock are falling more than 4% as of this writing.

The company is valued extremely highly, especially given the business’s current scale. Indeed, Trump Media enjoys a market capitalization of more than $8 billion despite only recording revenue of $770,000 in the first quarter of 2024, which represents an over 30% decline from the same quarter a year ago.

On paper, Trump Media is the primary source of Trump’s wealth. Indeed, his majority stake in the company is valued at more than $5 billion, though he is unable to sell or borrow against DJT stock until this September.

Truth Social, Trump’s self-owned social media company, has become a chamber of criticism following the guilty verdicts. Many of the former president’s strongest supporters have flocked to the platform to voice their dissatisfaction with the trial results.

“We are all disgusted by this sham verdict and want to live in a world with a better and strong America so we are donating to Trumps campaign and buying shares,” wrote one Truth Social user.

While today’s news only tangentially affects the stock market, its real impact will be felt this November. Indeed, expect some election-cycle volatility as investors react to ongoing news related to the election. As a reminder, there is no law barring a convicted felon from running for or claiming the executive seat.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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