Trump’s Last-Minute Social Media Tip Sends Stocks Soaring After Tariff Pause

When Donald Trump shared some financial advice early one morning, stock markets were in a delicate balance. "THIS IS A GREAT TIME TO BUY!!! DJT," he proclaimed on Truth Social. This post came just before he announced a pause on most tariffs, and the impact was immediate. By the end of the trading day, the S&P 500 rose by 9.5%, reclaiming around $4 trillion in value.

Opinions on Trump’s advice vary. Richard Painter, a former White House ethics lawyer, warned about potential insider trading implications. "He better be careful," he said. The surge in stock prices following Trump’s announcement raised eyebrows, especially among lawmakers. Democratic Senator Adam Schiff questioned if anyone manipulated the market for personal gains.

Trump commented on the timing ambiguously, suggesting he had been considering the tariff pause for days but also claimed to have decided early that morning. White House spokesman Kush Desai defended Trump’s social media use, stating that it was part of his responsibility to reassure the public about economic stability.

Another interesting aspect was Trump signing off his message with "DJT," the same abbreviation for Trump Media and Technology Group, the parent company of Truth Social. This led to speculation on whether he was hinting at buying stocks in his company. Regardless, Trump’s post boosted Trump Media’s stock by 22.67%, despite the company’s recent $400 million loss.

Stock trading often invites scrutiny, and Kathleen Clark, a law professor specializing in ethics, noted that Trump’s actions could suggest a troubling precedent. "He’s effectively sending a message that he can manipulate the market without consequences," she explained. This situation raises questions about ethics in politics and finance.

Market dynamics can shift rapidly, influenced by public figures and their statements. With Trump in the spotlight again, many are watching closely to see how his actions could shape financial trends moving forward.

Recent data shows that many investors react quickly to news from influential figures. A survey indicated that 60% of investors are more likely to act if they feel driven by social media insights. This trend underscores the increasing influence of digital platforms on financial decisions.

For more on market manipulation and ethics in politics, you can read the SEC’s guidelines.

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