The stock market couldn’t make up its mind on Monday, with the major indexes bouncing around aimlessly like a kid on a trampoline. The Dow Jones Industrial Average and S&P 500 managed to eke out tiny gains, but only after a roller-coaster day of choppy trading. Meanwhile, the tech-heavy Nasdaq Composite seemed equally indecisive, flirting with gains before settling for a meager 0.1% uptick.
But one stock that definitely wasn’t ambivalent? Trump Media & Technology Group (TMTG) – the company behind ex-President Donald Trump’s Truth Social platform. Those shares got absolutely shellacked, plunging nearly 10% to extend a multi-session beatdown that has the stock reeling.
Just last month, TMTG’s stock had erupted out of a protracted trading range, cheering the former president’s loyal investor base. But that breakout proved ephemeral, with the rally quickly fizzling out in spectacular fashion. On Friday, the sell-off intensified after shares blew through their 50-day moving average – a key technical level that often triggers sell signals among chartists.
By Monday’s close, TMTG had surrendered a staggering 46% from the highs reached just two weeks ago on March 26th. The drubbing left the stock flailing below its prior $58.72 buy point like a fish out of water.
For Trump’s famously volatile media venture, the plunge simply extended months of turbulence that has seen the stock whipsaw wildly between bouts of euphoria and utter despair. TMTG’s performance has mirrored the wider frenzy surrounding the former president himself, acting as a barometer of both his fervent supporters’ hopes and his critics’ disdain.
While TMTG grabbed the headlines, the rest of the stock market lacked a clear catalyst to really get things going on Monday. Trading volumes on the major exchanges were noticeably lighter than Friday’s session, suggesting many investors were staying on the sidelines.
Small caps managed to eke out some modest outperformance, with the Russell 2000 climbing 0.6%. But the big-cap indexes couldn’t muster much oomph. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, inched up 0.1%. The Innovator IBD 50 ETF (FFTY), holding this year’s highest-rated growth plays, stumbled 0.4%.
Over in the commodity pits, oil prices took a dive, with West Texas crude shedding nearly 2% to $86.07 a barrel amid worries about global growth weighing on energy demand. Nervous equity investors sought the safety of Treasuries, driving the 10-year yield up to 4.43% – flirting with 2024 highs.
Amid the broad market malaise, a handful of individual stocks managed to generate some fireworks on Monday.
Tesla (TSLA) shares got a jolt after billionaire CEO Elon Musk revealed the company will unveil its hotly-anticipated “robotaxi” on August 8th. The trillion-dollar carmaker surged over 6% at one point, representing its biggest intraday pop since mid-March. Musk’s announcement added fuel to the buzz around Tesla ditching an affordable, mass-market EV in favor of the robotaxi initiative.
Over in the healthcare space, Glaukos (GKOS) broke out to new heights, blasting through a $97.24 buy point from a cup-and-handle base. Shares of the glaucoma treatment firm skyrocketed to fresh all-time peaks, clearly striking investors’ fancies.
In real estate, Apartment Income REIT (AIRC) gapped up a staggering 22% after private equity leviathan Blackstone unveiled plans to take the company private for $10 billion. The buyout premium sent AIRC soaring to levels unseen before in the stock’s relatively short public trading history.
Not everything was rainbows and unicorns, though. Ad-tech firm Perion Network (PERI) imploded over 40% after slashing its full-year revenue outlook, highlighting the struggles in the digital advertising realm.
The crypto space was having a pretty solid Monday overall, with Bitcoin vaulting back above $71,600 amid the recent resurgence in digital asset prices. Bitcoin plays like MicroStrategy (MSTR) and Coinbase (COIN) jumped over 6% and 7% respectively. But Marathon Digital (MARA), a major crypto miner, dropped almost 2% in a volatile session.
With earnings season lurking, bank stocks drew some attention ahead of big names like JPMorgan (JPM), Citi (C), and BlackRock (BLK) reporting later this week. JPM managed to hold above its 21-day exponential line, while Citi kept its head above the $57.95 buy point from a recent flat base. But asset manager BlackRock wasn’t so fortunate, violating its 50-day line and falling back below its $819 entry.
Beauty products retailer Ulta (ULTA) bounced nearly 3% after an upgrade to “buy” from Loop Capital. The vote of confidence helped soothe investors after Ulta had sold off hard last week following some cautious executive commentary.
Video game maker Take-Two Interactive (TTWO) also rebounded from some recent selling pressure, rallying over 2% following an upgrade from analysts at Citigroup. The bank boosted its TTWO price target to $200, encouraged by the company’s game pipeline.
As the closing bell’s sonorous tones reverberated across the New York trading floors, investors were left to ponder the predictions of the day’s milquetoast action. With the major indexes stalling out yet again, concerns about inflation, interest rates, and economic growth clearly remain top of mind.
All eyes will be laser-focused on the onslaught of earnings reports and economic data over the coming days and weeks. The market’s zigs and zags will ultimately be dictated by how corporations and consumers are navigating the current landscape. A rollercoaster ride seems all but guaranteed based on Monday’s indecisive action.
