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Investors took note of President Donald Trump’s recent comments on Twitter, which led to market shifts on Wednesday. Just after the market opened, Trump encouraged buying stocks, declaring on Truth Social, “THIS IS A GREAT TIME TO BUY!!!” The message included his initials, “DJT,” which also represent the ticker symbol for Trump Media & Technology, the parent company of Truth Social in which he holds a majority interest.
Following Trump’s advice, those who acted immediately reaped substantial rewards. The stock market saw a significant rebound later in the day when the president announced the reversal of some tariffs, a notable turnaround from the adverse impact his earlier policies had on the markets. These tariffs had caused a considerable downturn the previous week.
For instance, the SPDR S&P 500 ETF Trust (SPDR), which mirrors the movements of the S&P 500 index, was priced at $494.11 when Trump made his recommendation. By the time it reached session highs later in the day, it had risen to $539.87, marking an increase of over 9%. An investment of $1,000 at 9:37 a.m. could have grown to approximately $1,093 at its peak.
In another example, shares of Trump Media & Technology quickly responded to his post. After his buying suggestion, shares dropped to $16.69 but later surged to a high of $20.40, signifying a rise of more than 22%. A $1,000 investment could have resulted in a sell-off worth about $1,222 during the stock’s peak.
Tesla stocks, which have garnered significant attention given CEO Elon Musk’s political engagement, showed similar volatility. The shares fell to $226.27 at the time of Trump’s post before climbing to $266.92, reflecting an 18% gain. An investment of $1,000 at the moment of Trump’s tweet could have turned into roughly $1,180 at the session’s highs.
Despite these quick gains, it is important to note that the market’s overall performance remains below pre-announcement levels. The S&P 500, while showing a more than 5% increase on Wednesday, still reflected a decline of over 4% from the previous week.
Responses from retail investors highlighted a mix of elation and criticism. Forums such as Reddit’s WallStreetBets became inundated with discussions around the president’s market influence. One user humorously labeled themselves as “psychic” for having invested a retirement account before the announcement, while others voiced frustration over potential market manipulation, questioning the implications of the president’s remarks on fair trading practices.
As the market continues to react to these developments, the intersection of politics and finance remains a topic of debate and scrutiny among investors and analysts alike.
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www.cnbc.com