What hint did Trump give to investors before suspending the tariffs?
Trump's announcement on Wednesday that he would pause tariffs on countries outside of China for 90 days led to a rise in global stock markets.
When U.S. President Donald Trump made some financial recommendations on Wednesday, stocks were fluctuating between gains and losses. However, unbeknownst to him, this situation was about to change. In a post on his social media platform Truth Social, Trump said, "GREAT TIME TO BUY!!! DJT." Less than four hours later, he announced a 90-day pause on almost all tariffs. Following the news, stocks began to rise: Nasdaq closed up 12.2%, and Dow Jones rose by 7.9%. With a closing increase of 9.5%, the S&P 500 index regained nearly $4 trillion (3.6 million euros) or 70% of what it had lost over the previous four trading days. Richard Painter, a critic of the President and former White House ethics lawyer, pointed out that the securities law prohibits trading on insider information or helping others to do so, stating, "[Trump] loves this control over the markets but should be careful." "People who bought when they saw this post made a lot of money." The key question is: Was Trump already considering delaying the tariffs when he made this post? When asked when he decided to withdraw the tariffs, Trump gave a mixed response: "I can say this morning. I’ve been thinking about it for the last few days." "Quite early this morning," he added. Later, a spokesperson asked to clarify the timing in an email sent to the White House did not provide a direct answer but argued that it was part of Trump's responsibilities. White House spokesperson Kush Desai said, "It is the President's responsibility to assure the markets and Americans of their economic security in the face of the media's relentless fearmongering." Trump Media and Technology Group shares are rising. Another unusual aspect of the social post was Trump's signing with his initials. DJT is also the stock symbol for Trump Media and Technology Group, the parent company of the president's social media platform Truth Social. It is unclear whether Trump was suggesting his followers buy stocks in general or specifically promoting Trump Media. This issue was posed to the White House, but no response was received. In his posts, Trump occasionally uses "DJT" to emphasize that he personally wrote the message. The ambiguity in Trump’s statements did not prevent people from pouring money into this stock. Trump Media, which lost $400 million (363.5 million euros) last year and seems unaffected by whether tariffs would be applied, had a striking performance, closing with an increase of around 22.7%, double that of the overall market. The 53% stake in the company held by a foundation currently controlled by Trump’s eldest son, Donald Trump Jr., increased by $415 million (377.2 million euros) during the day. Trump doubled down on Tesla. Trump Media was narrowly surpassed by Elon Musk's Tesla, another stock choice of the Trump administration, by just two hundred points. Last month, Trump held an unusual press conference outside the White House praising the company and its cars. This was followed by a program on Fox TV where the Secretary of Commerce urged viewers to buy stocks. Tesla's rise on Wednesday added $20 billion (18.2 billion euros) to Musk's fortune. Kathleen Clark, an expert in government ethics law at the University of Washington School of Law, stated that Trump's post would be investigated by other administrations, but might not trigger any responses beyond perhaps more viewers for Truth Social. "He is sending the message that he can effectively manipulate the market without facing consequences," Clark added, "Keep an eye on this space for future stock tips."