President Donald Trump rocked Wall Street Wednesday with a single post. Right after markets opened, he told his followers on Truth Social: “BE COOL.” Then just moments later, “THIS IS A GREAT TIME TO BUY!!! DJT.” But now his opponents cry foul: Was it insider trading?
Within hours, the Dow roared back. The S&P 500 surged over 7%. It was the market’s best day in years.
Now, Democrats are asking a fiery question: Did Trump just trigger insider trading?
Stocks Skyrocket After Tariff Pause
By midday, Trump stunned the business world again. He announced a 90-day pause on most of his tough new tariffs.
Wall Street didn’t hesitate. The S&P 500 jumped multiple percentage points within minutes. Traders scrambled to get back in. Tech stocks like Apple and Nvidia soared. Tesla rallied nearly 20%.
Critics Cry Foul Over Timing
But critics quickly raised red flags.
“Is this not market manipulation?” asked Rep. Mike Levin of California on X. “If you sold earlier this week, you lost. But if you followed Trump and bought—jackpot.”
Representative Adam Schiff also weighed in. He said the sudden U-turn opened the door to “dangerous opportunities for insider trading.”
Schiff vowed to press the White House. “Who knew this was coming?” he posted. “Who bought in early?”
White House Fires Back
The administration fired back just as fast.
“This isn’t manipulation—it’s reassurance,” said spokesman Kush Desai. “The president is calming fears created by media panic.”
White House aides framed Trump’s move as a masterstroke. They claimed dozens of nations begged the U.S. to ease up. So Trump offered a window to negotiate—except for China.
China, according to Trump, had “shown no respect for world markets.” Their penalty? A brutal 125% tariff, effective immediately.
SEC Under Pressure to Investigate
Now legal experts say this isn’t just politics. It could be a case for the SEC.
Kathleen Clark, a law professor and government ethics expert, said Trump’s post would “ordinarily trigger an investigation.”
“He knew his decision would move the markets,” Clark explained. “And he hinted at it just before.”
The SEC declined to comment. But watchdogs are watching closely.
What Happened First: Bonds Send Alarm Bells
The chaos actually began the night before. Bond markets sold off heavily, especially in Asia. Japan dumped U.S. treasuries at a record pace. Yields spiked. Panic set in.
Analysts warned of a financial cliff. Rate cut bets collapsed. Traders feared a recession could hit within months.
All eyes turned to Trump.
Morning Rollercoaster on Wall Street
As markets opened, stocks were already volatile. The Dow dropped over 300 points. Investors braced for more fallout from escalating tariffs.
Then came Trump’s posts.
“BE COOL.”
“THIS IS A GREAT TIME TO BUY!!!”
Minutes later, the market flipped green. Volume surged. But it didn’t stop there.
Trump’s Move: Pause Tariffs, Punish China
Just after noon, Trump posted again. The big news?
A 90-day pause on most tariffs. Negotiations were underway, he said. Over 75 countries had asked to talk.
But China? “No deal.”
Trump said they disrespected global markets. So he slammed them with a 125% tariff—no delay.
Ethics Questions Won’t Go Away
Now Democrats want more answers.
“How was this timed?” asked Rep. Steven Horsford during a House hearing. “What billionaire just got richer?”
Trump’s trade chief, Jamieson Greer, dismissed concerns. “We’re resetting the global system,” he said.
But that didn’t satisfy lawmakers or experts.
“It’s about fairness,” said Professor Clark. “You can’t telegraph market-moving news to your followers.”
Could This Be Insider Trading?
Insider trading doesn’t only mean using private company info.
Giving advance notice of government actions—especially ones that spike the stock market—can be just as serious.
“You’re not allowed to game the system,” Clark said. “And presidents shouldn’t be tipping off their base.”
For now, the SEC has made no move. But pressure is mounting.
Market Rallies, But Trust Takes a Hit
Meanwhile, markets keep rallying.
Investors are glad the tariffs are on hold. But many say they’re uneasy. If politics starts driving trades, confidence could evaporate.
Some on Wall Street now fear what happens in 90 days. Will the pause stick? Or will Trump change course again?
One trader summed it up best: “He moves the market with a tweet. That’s terrifying.”
