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In a striking display of market influence, President Donald Trump’s social media post Wednesday morning appeared to presage a major stock market rally that would unfold just hours later, raising questions about the timing of his statements and their impact on investors.
“THIS IS A GREAT TIME TO BUY!!! DJT,” Trump wrote on his Truth Social platform at 9:37 a.m., at a moment when markets were wavering between modest gains and losses. Less than four hours after this pronouncement, the president announced a 90-day pause on nearly all his previously threatened tariffs, sending stocks soaring.
The S&P 500 closed up 9.5% by day’s end, recapturing approximately $4 trillion in market value – about 70% of the losses sustained during the previous four trading sessions. The rebound represented one of the most dramatic single-day recoveries in recent market history.
The timing has drawn scrutiny from ethics experts who question whether Trump had already decided on the tariff pause when he issued his buying recommendation. When later asked about when he made his decision, the president’s answer lacked clarity.
“I would say this morning,” Trump said. “Over the last few days, I’ve been thinking about it.” He then added, “Fairly early this morning,” without specifying an exact time.
White House spokesperson Kush Desai defended the president’s post, framing it as part of Trump’s responsibilities. “It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security in the face of nonstop media fearmongering,” Desai wrote, though he did not directly address the timing question.
Adding another layer of complexity was Trump’s signoff – “DJT” – which also happens to be the stock ticker symbol for Trump Media and Technology Group, the parent company of Truth Social. This ambiguity left unclear whether Trump was recommending stocks broadly or his own company specifically.
Despite this uncertainty, Trump Media shares surged 22.67% on Wednesday, more than doubling the broader market’s performance. This remarkable gain came despite the company having lost $400 million last year and having no obvious connection to tariff policy. The rally increased the value of Trump’s 53% ownership stake (now held in a trust controlled by Donald Trump Jr.) by approximately $415 million.
Only Tesla performed marginally better, with a fractionally higher percentage gain. The electric vehicle maker has been another apparent Trump administration favorite, with the president holding an unprecedented news conference outside the White House last month praising the company and its products. Commerce Secretary subsequently appeared on Fox TV urging viewers to buy Tesla stock. Wednesday’s surge added approximately $20 billion to CEO Elon Musk’s fortune.
Richard Painter, former White House ethics lawyer and Trump critic, expressed concern about the president’s market influence. “He’s loving this, this control over markets, but he better be careful,” Painter said, noting that securities law prohibits trading on insider information or assisting others in doing so. “The people who bought when they saw that post made a lot of money.”
Kathleen Clark, a government ethics law expert at Washington University School of Law, suggested that such posts would likely have triggered investigations in previous administrations but might not generate official scrutiny now. “He’s sending the message that he can effectively and with impunity manipulate the market,” she noted. “As in: Watch this space for future stock tips.”
The episode highlights growing questions about the relationship between presidential communications and financial markets in an era of instant social media messaging, with particular concerns about potential conflicts of interest when a president maintains substantial business holdings while in office.
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8 Comments
Interesting insights on the potential market manipulation concerns here. Timing of the President’s social media post and subsequent tariff announcement does seem quite suspicious. I wonder if there will be any investigations or scrutiny from regulators on this.
This is a complex issue that touches on important principles of market integrity and public trust in government. I hope impartial experts and authorities are able to carefully examine the timeline and decision-making process to provide clarity and reassurance to investors.
As an investor, I’m very concerned about the implications of this situation. Even the perception of market manipulation can have serious consequences. I hope regulators take swift action to get to the bottom of this and reassure the investing public.
As an investor, I’m always wary of any signs of market manipulation, whether intentional or not. The timing of these events certainly warrants closer examination. Hopefully the relevant authorities will thoroughly investigate this matter to uphold market fairness and accountability.
As someone who closely follows commodity and energy markets, I’m very interested to see how this situation unfolds. Maintaining confidence in fair and efficient financial markets is critical, so I hope the relevant regulators take appropriate action to address any potential wrongdoing.
Wow, a $4 trillion market value swing in a single day is quite remarkable. While the tariff pause boost was welcome, the President’s social media post beforehand raises some serious questions. Maintaining public confidence in fair and transparent markets is crucial.
Hmm, the President’s lack of clarity on when the tariff decision was actually made raises red flags. Decisive action may be needed to ensure market integrity and prevent any potential conflicts of interest or insider trading. Curious to see how this plays out.
This is a concerning development. Even the appearance of improper market influence by high-level officials can severely erode public trust. Transparency and clear communication around decision-making processes is crucial, especially for issues that impact financial markets.