President Donald Trump’s bold social media post praising the stock market as a “great time to buy” has sparked significant conversations among traders and political analysts. Posted on Wednesday morning, April 10, on his Truth Social platform, Trump urged investors to remain calm amid a struggling market, declaring, “Everything is going to work out well” and adding, “THIS IS A GREAT TIME TO BUY!!! DJT.” Hours later, the stock market reacted dramatically.
By mid-afternoon, Trump announced a surprising 90-day pause on almost all recently implemented tariffs—a decision that sent market optimism soaring. The S&P 500 surged by 9.5% that day, recovering approximately $4 trillion of the value lost in the previous four trading sessions. Tesla, linked to Trump aide Elon Musk, saw an 18% jump in its share price, significantly boosting Musk’s wealth by $20 billion. Trump’s media company, in which he holds a 53% ownership stake, also saw substantial gains, rising by $415 million in value.
For stock market participants, these developments highlight the critical impact of governmental decisions on market trends and the potential for timely investment opportunities. However, the sequence of events has raised ethical questions. Critics, including Democratic lawmakers and ethics professionals, have posed concerns about whether Trump or his associates had prior knowledge of the tariff pause when his post was published, potentially enabling insider trading advantages.
The decision’s timing and market impact have drawn scrutiny from entities like the Office of Government Ethics. While federal law mandates timely disclosure of stock transactions by government officials, Democrats argue this situation warrants an “urgent inquiry” into potential misuse of insider information. Meanwhile, Trump’s critics, such as former White House ethics lawyer Richard Painter, caution about the potential misuse of presidential influence on markets.
For today’s traders, this episode underscores the volatility that political decisions can inject into the market. Investors should remain vigilant, closely monitoring major policy announcements and their potential ramifications. This incident also illustrates the importance of understanding market ethics as regulators and watchdogs assess the broader implications of public officials using their platforms to influence trading activities.
