In an unexpected turn of events, Donald Trump shared financial advice on his social media platform just before announcing a pause on tariffs that led to a significant surge in the stock market. This incident has sparked both excitement and controversy, raising questions about the ethics and legality of his actions.
Trump's Advice
On Wednesday morning, as stocks fluctuated between gains and losses, Trump posted on his Truth Social platform: “THIS IS A GREAT TIME TO BUY!!! DJT,” at 9:37 a.m. Less than four hours later, he announced a 90-day pause on nearly all tariffs, causing stocks to soar and closing up 9.5% by the end of the trading day.
Market Impact
The S&P 500 index regained approximately $4 trillion, or 70% of its value lost over the previous four trading days. This move was seen as a savvy call by the president, although some critics suggest he may have crossed an ethical line.
Criticism and Calls for Investigation
Trump's post did not go unnoticed, and several Democratic senators have called for an investigation. Senator Adam Schiff questioned on the BlueSky platform: “Did anyone buy or sell stocks and profit at the public’s expense?” Meanwhile, Senator Chris Murphy of Connecticut warned on X about a potential insider trading scandal.
Questions About the Timing of the Decision
A key question is whether Trump was already considering the tariff pause when he made his post. When asked about the timing of his decision, Trump stated, “Over the last few days, I’ve been thinking about it,” but then added to the confusion by saying, “Fairly early this morning.”
White House Response
When clarification was sought regarding the timing of the post, a White House spokesperson did not respond directly but defended Trump's message as part of his 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,” wrote White House spokesman Kush Desai.
Trump Media Shares
Another intriguing aspect of the post was Trump's sign-off with his initials, “DJT,” which is also the stock symbol for Trump Media and Technology Group, the parent company of his Truth Social platform. It remains unclear whether Trump was suggesting buying stocks in general or specifically in Trump Media. The White House did not address this question.
Market Reaction
Despite the ambiguity, investors began pouring money into Trump Media shares, which closed up 22.67%, doubling the broader market's performance. This remarkable surge is surprising for a company that lost $400 million last year and appears unaffected by whether tariffs are imposed or paused.
Trump's 53% ownership stake in the company, now held in a trust controlled by his eldest son, Donald Trump Jr., increased by $415 million in a single day.
Comparison with Tesla
Trump Media's shares were narrowly outperformed by another Trump administration favorite: Tesla, the company owned by Elon Musk. Last month, Trump praised Tesla in a press conference, followed by an appearance from his commerce secretary on Fox TV urging viewers to buy the stock. Tesla's surge on Wednesday added $20 billion to Musk's fortune.
### Ethical Reflections
Kathleen Clark, a government ethics law expert at Washington University, notes that in other administrations, Trump's post would have been investigated, but it is unlikely to trigger any significant reaction this time. “He’s sending the message that he can effectively and with impunity manipulate the market,” she said, “As in: Watch this space for future stock tips.”
### Conclusion
Trump's social media post and subsequent announcement regarding tariffs highlight the fine line between politics and the financial market. While some celebrate the market's rise, others question the ethics of such actions and their implications for investors and the economy.
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