World

Trump's Social Media Stock Tip Sparks Controversy and Market Surge

2025-04-10

Author: Charlotte

In a surprising turn of events, Donald Trump shared what many are now calling a financial power move on social media. Posting early Wednesday morning on his platform Truth Social, he declared, “THIS IS A GREAT TIME TO BUY!!! DJT.” Little did investors know how prophetic that statement would soon become.

Just hours later, Trump announced a much-anticipated 90-day pause on his newly imposed tariffs. The impact was immediate and dramatic: stocks soared, with the S&P 500 index climbing by 9.5%, equating to a staggering $4 trillion regain in market value.

However, Trump’s timing and the implications of his post have ignited a storm of criticism and concern. Richard Painter, a former ethics lawyer at the White House, pointed out the potential legal ramifications regarding insider trading. “He’s loving this control over markets, but he better be careful,” Painter warned.

Democratic senators are now calling for an investigation. Senator Adam Schiff raised the crucial question of whether anyone profited from Trump's timely tweet, suggesting that an insider trading scandal might be on the horizon.

Trump's comments regarding his decision to pause tariffs have added more fuel to the fire. When asked about the timing of his announcement, Trump claimed to have been contemplating it in the days leading up to the tweet but mentioned arriving at the decision "fairly early that morning," leaving many confused about the timeline.

Despite the controversy, Trump’s social media influence was palpable. His approval led to a meteoric rise in shares of Trump Media and Technology Group, which skyrocketed 22.67% following his post. This impressive bounce is notable, especially considering the company reported a staggering $400 million loss last year.

Trump's personal stake in the company, now held in a trust controlled by his son, Donald Trump Jr., saw a remarkable boost of $415 million due to this rash of trading.

Interestingly, Trump's post included his initials 'DJT', which coincidentally aligns with the stock symbol for Trump Media. Although it's unclear whether his statement was a general stock tip or a strategic nod to his own media venture, speculations swirled, leading to heavy investments.

In a broader context, Tesla stocks also experienced a surge on the same day, adding $20 billion to Elon Musk’s wealth shortly after Trump praised the company. This reinforces the perception that Trump's social media presence can significantly sway market activities.

Experts, like Kathleen Clark, suggest this situation would have prompted investigations in previous administrations but may simply lead to increased viewership for Truth Social now. “He’s sending the message that he can effectively and with impunity manipulate the market,” Clark noted. “Watch this space for future stock tips.”