Digital World Acquisition Corp News and Forecast: DWAC stock up as Trump returns to Truth Social

DWAC stock surges 8% on Thursday to close at $48.06.
Digital World Acquisition stock ignites as President Trump returns to Truth Social.
DWAC shares gained 13% in the after-hours market on Thursday.

Ivan Brian FXStreet

Guess who's back-back tell a friend, Shady's back-back! Well, not quite, but he who must-not-be-named for Democrats is back online. Ok, that's enough vague and obscure song and movie references which probably are way too old for most of you anyway.

Twitter (TWTR) and Tesla (TSLA) have been stealing all the social media limelight these past few weeks but as promised President Trump has returned to Truth Social and sent its proposed SPAC partner DWAC stock soaring. Truth Social was launched by Trump Media and Technology Group (TMTG) and DWAC is the SPAC vehicle that is proposing to take TMTG public.

DWAC stock news: Trump is back online

The Donald's return to social media is the perfect antidote to DWAC stock struggles and a knock to Twitter and Elon Musk. While nothing had ever been confirmed it was assumed that Elon Musk's advocacy for free speech would see Donald Trump's Twitter account restored. Elon Musk had after all said he favors suspension rather than outright bans from Twitter, but last week former US President Trump said he would not be returning to Twitter and instead promised to return to Truth Social. So promise kept as he posted on Thursday evening: "I'm Back! COVFEFE".

Ok, let's dig this one up again because there might be some of you who have no idea what COVFEFE means. The origin apparently dates back to a tweet President Trump sent in May 2017, "Despite the constant negative press covfefe". It was widely assumed to be a misspelling for coverage but quickly went viral. President Trump though did not admit it was a misspelling and instead posted later "Who can figure out the true meaning of 'covfefe' ??? Enjoy!"

According to Wikipedia "U.S. Representative Mike Quigley (D-IL 5) introduced H.R.2884, "The Communications Over Various Feeds Electronically for Engagement Act (COVFEFE Act)" on June 12, 2017. It would require the National Archives to preserve and store social media posts by the President of the United States. The bill was referred to the House Committee on Oversight and Government Reform on the same day but saw no further congressional action."

Excellent I'm glad we cleared that up and we are all up to speed on what COVFEFE means then! So, one tweet (oops see what I did there), sorry one truth, has generated a significant market cap gain of about $200 million for DWAC stock. Now imagine if President Trump tweeted (oops), truthed all the time. Truthed, is that even a verb? Maybe it will catch on, after all how weird did tweet first sound.

However, before getting too excited please be aware that DWAC has been struggling to get the SPAC deal with Truth Social over the finish line. The deal has been beset with delays and executive resignations which raises some concerns. Indeed Kerrisdale Capital recently opined that “with each passing day, the truth becomes harder to deny; a merger between two sketchy companies that is already taking too long is likely headed for collapse. We value DWAC at the cash held in trust: $10 (-80%).”

Kerrisdale did say they are short DWAC. We have no visibility on Kerrisdale and are merely reporting the story, we do not vouch for its accuracy or otherwise.

DWAC stock forecast: Long-term downtrend remains

DWAC stock is still in a clear and long-term downtrend. It is much too speculative at these levels for us, but if you do want to play it it does exhibit huge volatility and momentum. None better than former President Trump to stir up momentum in something, but please use careful risk management, we think this is way too high for the medium-to-long term.

DWAC stock chart, daily

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.