Digital World Acquisition Corp (NASDAQ: DWAC) shares are trading lower Wednesday, pulling back after surging ahead of the midterm elections earlier this week.
What Happened: On Monday, shares of Digital World soared on reports that former President Donald Trump planned to announce a presidential run for the upcoming 2024 election.
Related Link: 'See The Problem?': Short Seller Jim Chanos Rips Into Trump's DWAC Stock Valuation Amid Share Spike
At a campaign event for Iowa Republicans last week, Trump reportedly told a crowd of supporters that he was likely to run again.
"In order to make our country successful, and safe and glorious, I will very, very, very probably do it again," Trump said.
Why It Matters: Ahead of the midterms, many thought Trump might announce a presidential run to be part of midterm election conversations this week. Tuesday came and went without a formal announcement, which could be weighing on Digital World shares Wednesday.
Moreover, multiple candidates who were endorsed by the former President failed to prevail in the midterms. Democratic Lt. Gov. John Fetterman beat Republican Mehmet Oz in Pennsylvania, flipping a Senate seat.
Michigan’s Democratic Gov. Gretchen Whitmer defeated Trump-backed Republican Tudor Dixon. Trump-endorsed Kristina Karamo was also beaten by Democratic candidate Jocelyn Benson in a Michigan race for secretary of state.
The stage is set for Florida Governor Ron DeSantis to attempt to secure the Republican presidential nomination after an easy win in Florida last night. It's possible that Trump could be delaying a formal announcement in the wake of the Florida Governor's re-election.
Digital World is a SPAC set to merge with the former president's Trump Media & Technology Group, which is behind the Truth Social app.
DWAC Price Action: Digital World shares were down 19.7% at $22.56 at time of publication.
Photo: Gage Skidmore from Flickr.
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