When Donald Trump shared investment advice on Wednesday morning, the stock market was experiencing fluctuations. However, the scenario quickly transformed. At 9:37 a.m., Trump posted on his social media platform, Truth Social, declaring, “THIS IS A GREAT TIME TO BUY!!! DJT.”
In less than four hours, Trump announced a temporary suspension of nearly all his tariffs for 90 days. This announcement led to a significant surge in the stock market, with stocks closing up 9.5% by the end of the trading session. The market, as measured by the S&P 500, recaptured approximately $4 trillion, or 70%, of the losses it had sustained over the previous four trading days.
The timing of Trump’s financial advice was strikingly accurate, raising some eyebrows. Richard Painter, a former White House ethics lawyer and critic of Trump, cautioned that while Trump might enjoy the influence he wields over the markets, he should tread carefully. Painter noted that securities law forbids trading on insider information or facilitating others to do so, highlighting that individuals who acted on Trump’s post benefited significantly.
The critical question now is whether Trump was already considering the tariff suspension when he posted his financial advice. When questioned about the timing of his decision, Trump’s response was somewhat vague, stating, “I would say this morning,” and adding that he had been pondering over it for the past few days. He further elaborated by saying, “Fairly early this morning.”
A request for clarification on the timing was directed to the White House via email. However, a spokesperson refrained from providing a direct response and instead defended Trump’s post as part of his role as president. Kush Desai, a White House spokesperson, wrote that reassuring the markets and the American people regarding economic security in the face of continuous media fearmongering is the responsibility of the President.
Another intriguing aspect of Trump’s message was his use of initials, “DJT,” which also stand for Trump Media and Technology Group, the parent company of Truth Social. It remains unclear if Trump’s post was urging the purchase of stocks in general or specifically Trump Media stock. The White House did not clarify this matter either. Trump’s posts occasionally feature the “DJT” signature, typically to underscore that he personally crafted the message.
Despite the ambiguity, investors flocked to buy that particular stock. Trump Media’s shares skyrocketed by 22.67%, doubling the growth seen in the broader market, an impressive feat for a company that suffered a loss of $400 million the previous year and was seemingly unaffected by tariff implementations or suspensions.
Trump’s 53% ownership in the company, now held in a trust managed by his eldest son, Donald Trump Jr., experienced a $415 million increase in value in just one day. Trump Media’s shares were narrowly outperformed by another stock linked to the Trump administration — Tesla, owned by Elon Musk.
Last month, Trump held a press conference outside the White House, extolling Tesla and its vehicles. This was followed by a TV appearance by Trump’s commerce secretary on Fox, recommending viewers to invest in Tesla’s stock. The surge in Tesla shares on Wednesday added $20 billion to Musk’s wealth.
Kathleen Clark, a government ethics law expert from Washington University School of Law, opined that in most previous administrations, Trump’s post would have been subjected to scrutiny. However, it is unlikely to trigger significant action, except perhaps attracting more attention to Truth Social.
Clark noted, “He’s sending the message that he can effectively and with impunity manipulate the market,” suggesting that people should watch for future stock tips from Trump.