Since early 2025, Donald Trump has been accused of attempting to manipulate the stock market by making social media posts about tariffs and trading, which have caused significant market volatility. Following these events, Democratic lawmakers and ethics experts called for an investigation by the Securities and Exchange Commission (SEC) into potential market manipulation and insider trading.
Tariff and stock market controversy (April 2025)
Volatile market behavior: In early April 2025, the stock market experienced a dramatic downturn after the Trump administration announced new tariffs on goods from numerous countries.
Social media post and policy reversal: Shortly after the market opened on April 9, Trump posted on his Truth Social platform, "THIS IS A GREAT TIME TO BUY!!!". Less than four hours later, he announced a 90-day pause on the recently imposed tariffs for most countries, causing stocks to surge dramatically. The S&P 500 jumped more than 9%, and the Nasdaq rose over 12%.
Accusations of manipulation: The timing of Trump's post and subsequent policy reversal led to accusations of market manipulation. Critics alleged that the sequence of events was designed to first drive down stock prices and then engineer a rally, allowing investors with prior knowledge to profit.
"DJT" sign-off: Some reports highlighted that Trump signed his post with his initials, "DJT," which is also the stock ticker for Trump Media & Technology Group, the parent company of Truth Social. The company's stock rose 22% that day.
Calls for investigation
Democrats' letter to the SEC: On April 11, 2025, prominent Senate Democrats, including Elizabeth Warren and Chuck Schumer, sent a letter to SEC Chair Paul Atkins calling for an investigation. They requested the SEC to determine whether Trump, his administration, or insiders engaged in illegal activities based on non-public information.
Ethics concerns raised: Ethics experts, such as former White House ethics lawyer Richard Painter, have pointed out the risks and potential legality issues of a president making public statements that directly influence the markets.
Potential obstacles to a formal investigation
Uncertain legal grounds: Legal experts have noted that proving deliberate illegal manipulation is challenging, partly because a public social media post does not constitute insider trading by definition. A president also has significant latitude to make public statements regarding economic policy.
Weakened regulatory oversight: Experts, including former SEC officials, have raised concerns about the SEC's ability to investigate such matters effectively. Reports indicate a significant reduction in SEC staffing under the Trump administration, leading to worries about weakened oversight and a reluctance to hold powerful financial interests accountable.
White House defense: In April 2025, the White House denied any wrongdoing, stating that Trump's social media post was intended to calm markets and reassure Americans about their economic security. .
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