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Trump’s Market Influence: A Day of Surging Stocks and Controversy
NEW YORK (AP) — On a seemingly ordinary morning, Donald Trump shared his thoughts on financial strategies, just as stock markets were fluctuating between gains and losses. His social media statement would soon trigger an unexpected shift.
At 9:37 a.m., he declared on his platform, Truth Social, “THIS IS A GREAT TIME TO BUY!!! DJT.” Less than four hours later, he revealed a major policy decision: a 90-day suspension of nearly all his tariffs. This announcement propelled stocks upward, culminating in a 9.5% increase by the market’s close, effectively recovering approximately $4 trillion, or 70%, of the value lost in the preceding four trading days.
This remarkable market reaction raises questions about the timing and implications of Trump’s social media communications. Richard Painter, an ethics lawyer and critic of Trump, pointed out the potential legal ramifications of his posts. “He’s loving this, this control over markets, but he better be careful,” he cautioned. Painter highlighted that securities law bans trading based on insider information, underscoring the risks associated with such public statements. “The people who bought when they saw that post made a lot of money,” he noted.
When pressed about the timing of his tariff decision in an interview, Trump provided an unclear response. “I would say this morning. Over the last few days, I’ve been thinking about it,” he stated, only to add later, “Fairly early this morning.” The White House’s response to inquiries about this timing was evasive, with spokesperson Kush Desai framing the post as a presidential duty to bolster market confidence amid prevailing media fears.
Interestingly, Trump’s sign-off of “DJT” holds dual significance; it is not only his initials but also the stock ticker symbol for Trump Media and Technology Group, the parent company of Truth Social. This ambiguity prompted speculation about whether Trump was suggesting a broader investment strategy or specifically advocating for his company’s stock. Despite inquiries to the White House, clarity was not forthcoming, although Trump occasionally uses “DJT” on his posts to signify his direct involvement.
The initial uncertainty didn’t deter investors, who rapidly bought shares in Trump Media, leading the company’s stock to rise by 22.67%—doubling the broader market’s performance. This marked an impressive rebound for a company that had incurred losses exceeding $400 million last year, independent of tariff decisions.
Trump’s stake in the company, now placed in a trust managed by his son Donald Trump Jr., appreciated by $415 million due to this day’s trading activity. Notably, Trump Media’s performance was closely rivaled by Tesla, another stock he endorsed, which was recently the subject of high-profile discussions including a news conference where Trump praised the electric vehicle maker.
The surge in Tesla’s stock on the same day added $20 billion to Elon Musk’s wealth, further intertwining Trump’s informal influence with the market. Kathleen Clark, an expert in government ethics from Washington University School of Law, remarked that Trump’s actions might have sparked investigations in previous administrations but are unlikely to draw significant scrutiny now. “He’s sending the message that he can effectively and with impunity manipulate the market,” she stated, suggesting a potential precedent for future financial advisories from Trump.
This episode underscores the complex interplay between social media, political influence, and stock market dynamics, raising vital questions about the intersection of ethics and economic policy in the digital age.
Source
finance.yahoo.com