Donald Trump is under fire for possible market manipulation after a social media post urging investors to buy stocks preceded a sudden reversal on trade tariffs, which sent markets soaring worldwide.
On Wednesday morning, just after US markets opened, Trump wrote on his social media platform Truth Social: “THIS IS A GREAT TIME TO BUY!!! DJT.”
Within four hours, he stunned investors by announcing a 90-day pause on new tariffs for most countries, excluding China.
The announcement triggered a major rally, with the S&P 500 closing up more than 9% and the tech-heavy Nasdaq surging over 12%.
The global ripple effect was swift.
Japan’s Nikkei 225 jumped 9%, while London’s FTSE 100 climbed as much as 4% in early Thursday trading.
Adding intrigue to Trump’s post was his unusual decision to sign off with “DJT” — the same ticker symbol for Trump Media & Technology Group, which owns Truth Social.
Shares of the company rose 22% on Wednesday, raising further questions about the timing and intent of the president’s message.
Calls for investigation intensify in Washington
The sequence of events has prompted sharp criticism from lawmakers, with allegations that Trump’s actions provided an opportunity for insider trading.
Senator Adam Schiff said the market swings demand scrutiny:
“Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks and profit at the public’s expense?”
Senator Chris Murphy echoed concerns, warning of an “insider trading scandal” and speculating that Trump’s post was a signal to his associates to capitalise on private information.
Meanwhile, Representative Alexandria Ocasio-Cortez called for all members of Congress to disclose any recent stock trades, hinting at suspicious activity:
“I’ve been hearing some interesting chatter on the floor,” she wrote on X.
“Disclosure deadline is May 15th. We’re about to learn a few things.”
Ethics and legal experts see grounds for investigation
Legal scholars and ethics experts argue that Trump’s actions merit serious investigation.
Richard Painter, former chief ethics lawyer for President George W. Bush, warned that the timing of Trump’s post leaves him vulnerable to accusations of market manipulation.
Kathleen Clark, a professor at Washington University School of Law, said Trump’s behaviour “would ordinarily trigger an investigation by the Securities and Exchange Commission.”
She added, “Such investigators would be looking for evidence that Mr. Trump knew he was going to make an announcement that would move the market and then provided a clue to his followers,” she said in a NYT report.
The SEC, which oversees compliance with federal securities laws, declined to comment to the NYT when asked about Trump’s post.
This is not the first time Trump has faced questions over financial dealings.
Before beginning his second term, he drew criticism over the launch of his $TRUMP meme coin.
Reports at the time suggested that select investors, some connected to the Trump Organization, reaped significant profits, with one crypto wallet reportedly making $109 million, according to a New York Times analysis.
White House defends president’s motives
White House officials have denied allegations of misconduct, insisting that Trump’s social media post was intended to steady the markets amid widespread uncertainty.
“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 fear-mongering,” said Kush Desai, a spokesman for the White House.
Desai accused Democrats of “grasping at straws to play partisan political games” and urged them to work with the administration to strengthen the US economy.
While the White House downplays the controversy, pressure is mounting in Washington for transparency and accountability.
Whether regulators choose to pursue the matter could have far-reaching implications for Trump’s presidency and financial markets alike.
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