1. Trump sues Dow Jones and News Corp for libel, alleging defamation. 2. The lawsuit could impact public perception and stock prices of affected entities.
Libel lawsuits often lead to negative sentiment affecting stock prices. Historical examples show significant declines in affected companies during similar lawsuits.
Legal issues involving high-profile figures like Trump can shift investor sentiment and perceptions, impacting NWS's stock.
Initial market reactions to legal actions are typically immediate, affecting shares shortly after news breaks.