President Trump’s social media posts on Wednesday morning have raised questions about potential market manipulation. At 9:37 a.m., Trump posted on Truth Social, “THIS IS A GREAT TIME TO BUY!!! DJT.” Less than four hours later, he announced a pause on nearly all tariffs, causing stocks to soar and the S&P 500 to regain about $4 trillion in value. Richard Painter, a former White House ethics lawyer, cautioned that Trump should be careful with his control over the markets.
Securities laws prohibit trading on insider information or helping others do so. “People who bought when they saw that post made a lot of money,” Painter said. The timing of Trump’s decision to pause tariffs is unclear.
When asked about it, he gave a muddled answer, saying, “I would say this morning,” and later adding, “Over the last few days, I’ve been thinking about it.” A White House spokesperson did not directly address the timing but defended Trump’s post as part of his duty to reassure the markets and Americans about their economic security.
Trump post scrutinized for manipulation
Another curiosity was Trump’s use of “DJT” in his post, which is also the stock symbol for Trump Media and Technology Group, the parent company of Truth Social.
While it’s unclear if Trump meant buying stocks in general or Trump Media in particular, the company’s stock closed up 22.67%. Trump’s 53% ownership stake in the company, controlled by a trust managed by his oldest son, Donald Trump Jr., rose by $415 million. Kathleen Clark, a government ethics law expert at Washington University School of Law, noted that in other administrations, Trump’s post would have triggered an investigation.
However, she expressed skepticism that it would lead to any action in this case. “He’s sending the message that he can effectively and with impunity manipulate the market,” she said. “Watch this space for future stock tips.”
