Trump’s Social Media Post Raises Eyebrows Amid Market Fluctuations

In a dramatic series of events, President Donald Trump’s social media activity has come under scrutiny following his announcement to pause tariffs on most countries, which coincided with a significant surge in the stock market. On April 9, just hours before the announcement, Trump took to Truth Social to encourage his 9.4 million followers to invest, declaring, “THIS IS A GREAT TIME TO BUY!!! DJT” at 9:37 a.m. Eastern Time. By 1 p.m., the president revealed the tariff pause, which led to a sharp recovery in the cratering stock markets.

This abrupt market shift prompted Democratic Senators Ruben Gallego of Arizona and Adam Schiff of California to demand a federal investigation. They expressed concerns that Trump, his family, or advisors may have had prior knowledge of the tariff pause and could have engaged in insider trading. In a letter to the acting director of the Office of Government Ethics, they emphasized the potential for Trump and his inner circle to leverage nonpublic information for financial gain.

The president’s decision to pause tariffs is not an isolated incident; in less than three months, he has made similar moves three times, despite previous assertions that such pauses would not occur. Critics have long raised ethical questions regarding Trump’s business interests, especially since he has not divested from his financial holdings since taking office. His assets are reportedly managed by his children through a trust, but the potential for conflict remains a concern.

Trump’s financial interests include a significant stake in Truth Social’s parent company, Trump Media & Technology Group, which trades under the ticker DJT—an acronym for his initials. Following the tariff announcement, the company’s stock surged by over 21%, mirroring the broader market’s recovery.

In response to allegations of market manipulation, a White House spokesperson defended Trump’s actions, stating that it is the president’s duty to reassure the public and markets amidst media-driven fears. This isn’t the first time Trump has made public statements encouraging stock purchases; during a market downturn in 2018, he similarly urged investors to view it as a “tremendous opportunity to buy.”

Concerns over potential insider trading have been echoed by lawmakers such as Rep. Steven Horsford of Nevada, who suggested that the administration might exploit trade policy for personal gain. He warned that if such actions were taken, it could constitute market manipulation.

Market manipulation investigations typically begin with stock exchanges like Nasdaq and the New York Stock Exchange, which monitor for unusual trading patterns. If anomalies are detected, the Securities and Exchange Commission (SEC) may be involved to determine if any laws were broken. However, the challenge lies in identifying who benefited from Trump’s social media posts, as private individuals are not required to disclose trades in the same way that corporate officers and shareholders are.

While Trump’s comments about the stock market were vague, they nonetheless raised ethical questions. Richard Painter, a former chief ethics lawyer for the George W. Bush administration, cautioned that Trump’s social media use could lead to allegations of market manipulation or insider trading. He highlighted the risks involved in such public statements, which could invite scrutiny from federal investigators or lawsuits from investors who suffer losses.

As major stock indexes experienced a sharp rise— the S&P 500 climbing 9.5% and the Dow Jones Industrial Average nearly 8%— the implications of Trump’s social media activity extend beyond immediate market reactions. Financial experts predict that hedge funds may start tracking Truth Social for trading opportunities based on Trump’s posts, potentially altering the landscape of market trading strategies.

As the situation unfolds, the intersection of politics, social media, and financial markets continues to raise critical ethical questions and challenges for regulatory bodies, investors, and the broader public.