FBI Director's Recent Remarks Spark Temporary Krispy Kreme Stock Surge
FBI Director Kash Patel's Stock Purchases Spark Interest in Krispy Kreme and ON Semiconductor
In a recent development, FBI Director Kash Patel's stock purchases have caught the attention of investors and regulators alike. The purchases, made by Patel in May, include shares in ON Semiconductor and Krispy Kreme.
According to financial disclosures filed with the Office of Government Ethics, Patel purchased $15,000 to $50,000 worth of Krispy Kreme shares on May 9. This investment seems to have paid off, as Krispy Kreme shares have risen about 15% since then. However, it's important to note that the advance in Krispy Kreme shares fizzled out just as quickly as it started.
On May 12, Patel also bought $50,000 to $100,000 worth of shares in ON Semiconductor. Since this purchase, ON Semiconductor's shares have risen about 12%.
Patel has stated that he submits proposals under Department of Justice guidance before purchasing stocks. This is in line with the ethics requirements for federal employees, who are allowed to trade stocks.
The rise and fall of Krispy Kreme shares after Patel's comments is an example of the volatile nature of the stock market this year. The market mania this year, where traders are driving rallies based on hype and virality, not fundamentals, is evident in Krispy Kreme's case. The second best day on record for Krispy Kreme shares occurred on July 22, when the stock soared 26.7% in one day.
However, the rally in Krispy Kreme shares after Patel's comments was brief and did not last the entire day. Krispy Kreme shares jumped as much as 11.5% after Patel's comments, but ended the day higher by only 0.96%.
Steve Sosnick, chief strategist at Interactive Brokers, stated that the rally in Krispy Kreme shares exemplifies the momentum-driven trends in markets this year.
In a surprising turn of events, Patel also made a comment about Krispy Kreme stock being a solid investment during his testimony before the House Judiciary Committee on Wednesday. This comment led to a temporary boost in Krispy Kreme's share price.
Interestingly, the FBI Director has not commented on his ON Semiconductor purchase. The FBI declined to comment on Patel's stock purchases, and the Department of Justice has not responded to CNN's request for comment.
Members of the House have introduced a bill to ban members of Congress from trading stocks. During his testimony on Wednesday, Patel said he'd work with Neguse, the Colorado congressman, on the bill.
It's worth noting that Krispy Kreme is a doughnut chain founded in North Carolina. The company has seen a rollercoaster ride this year, with shares down 68% this year, but had gained this summer as part of the so-called meme stock craze.
As the situation unfolds, it will be interesting to see how these stock purchases will impact Patel and the companies he invested in. Stay tuned for more updates.
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