ASX edges up after Wall Street slides; Trump Media soars

Trump Media & Technology Group had a rollercoaster debut, closing 16 per cent higher. At one stage during the session, it was up more than 50 per cent. It was the first day of trading for the company under its new ticker, “DJT,” which are the initials of former President Donald Trump. The company took the place of a shell company that had been trading on the Nasdaq after the two merged.

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The stock’s price has shot well beyond what several experts say is reasonable, driven by excitement about Trump’s latest run for the White House. Truth Social, the platform that’s the company’s main asset, is losing money and expects to continue to do so while competing against rivals with many more users.

Krispy Kreme jumped 39.4 per cent, after it announced a deal where McDonald’s restaurants will sell its doughnuts across the country. It will begin later this year and hopes to be nationwide by the end of 2026.

The overall US stock market is also facing criticism that it’s become too expensive, though not as much as Trump Media & Technology Group has received.

The S&P 500 has already roared nearly 10.5 per cent higher this year and is on track to close out its fifth straight winning month. Excitement is high because the US economy has remained remarkably resilient despite high interest rates meant to get inflation under control. Plus, the Federal Reserve looks set to begin lowering interest rates this year because inflation has cooled from its peak.

Strong buying of stock by companies themselves has also helped to support prices. Stock buybacks among corporate clients at Bank of America reached their fifth-highest level in its weekly data history, going back to 2010, according to strategist Jill Carey Hall.

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But critics say a broader range of companies will need to deliver strong profit growth to justify their big moves in price. Progress on bringing inflation down has also become bumpier recently, with reports this year coming in hotter than expected.

Still, the broad expectation among traders is for the Federal Reserve to begin cutting its main interest rate in June. Some even see a slight possibility of it starting at its meeting next week.

In the bond market, Treasury yields were holding relatively steady following mixed reports on the economy. One from the US government showed that orders for machinery, computers and other long-lasting manufactured goods rose in February following two months of drops.

But a later report from the Conference Board said confidence among US consumers unexpectedly ticked down when economists were forecasting a rise. Solid spending by US consumers has been one of the linchpins keeping the economy out of a long-predicted recession.

The yield on the 10-year Treasury held steady at 4.24 per cent, where it was late Monday. The two-year yield, which more closely tracks expectations for the Fed, slipped to 4.60 per cent from 4.63 per cent

In stock markets abroad, indexes were mostly modestly higher across Europe and Asia.

AP