TLDR:
- President Trump posted “THIS IS A GREAT TIME TO BUY!!! DJT” on Truth Social before announcing a 90-day tariff pause
- Trump Media stock closed up 22.67%, outperforming the broader market’s 9.5% gain
- The timing of Trump’s post raised questions about potential insider information
- Trump’s 53% stake in Trump Media, held in a trust controlled by Donald Trump Jr., increased by $415 million
- Trump Media filed to register up to 142.5 million shares for potential sale, though the company stated this was a routine filing
President Trump’s social media post advising people to buy stocks preceded a major market rally on Wednesday. His message came just hours before he announced a pause on tariffs that sent stocks soaring.
“THIS IS A GREAT TIME TO BUY!!! DJT,” Trump wrote on Truth Social at 9:37 a.m. on Wednesday morning. At that time, the stock market was wavering between gains and losses.
Less than four hours after his post, Trump announced a 90-day pause on nearly all his tariffs. This news triggered a dramatic market response.
The broader market, measured by the S&P 500, closed up 9.5% by the end of trading. This represented a recovery of about $4 trillion, or 70%, of the value lost over the previous four trading days.
Timing Raises Questions
Trump Media stock showed even stronger performance than the broader market. Shares of Trump Media and Technology Group (DJT), which owns Truth Social, closed up 22.67% on Wednesday.
The stock had started the day at $16.60 per share at 9:30 a.m. ET. Just ten minutes after Trump’s post, the price had climbed to $17.47. By 2:40 p.m. ET, shares reached $20.32.
The timing of Trump’s post raised questions about potential insider information. When asked about when he decided on the tariff pause, Trump gave a somewhat unclear answer.
“I would say this morning,” he said. “Over the last few days, I’ve been thinking about it.” He then added, “Fairly early this morning.”
Richard Painter, a former White House ethics lawyer and Trump critic, expressed concern about the situation. “He’s loving this, this control over markets, but he better be careful,” Painter said, noting that securities law prohibits trading on insider information or helping others do so.
Stock Symbol Confusion
Another interesting aspect of Trump’s post was his sign-off with “DJT.” These initials serve as both the president’s personal initials and the stock ticker for Trump Media.
This created some ambiguity about whether Trump was recommending buying stocks in general or Trump Media specifically. The White House didn’t clarify this point when asked.
Regardless of the intention, investors poured money into Trump Media stock. The company’s performance is particularly striking given that it lost $400 million last year and seems unaffected by tariff policies.
Trump’s 53% ownership stake in the company, now held in a trust controlled by his son Donald Trump Jr., increased in value by $415 million on Wednesday alone.
Share Registration Filing
According to regulatory filings, a trust overseeing the president’s stake in Trump Media could potentially sell up to 115 million shares in the future.
Trump Media filed to register up to 142.5 million shares and warrants for sale with the Securities and Exchange Commission. This includes 114.75 million shares of common stock held by Trump’s trust.
However, Trump Media issued a statement denying that the filing indicates Trump’s trust or other insiders plan to sell their shares. “To be clear, these shares were already registered last June on an S-1 form, and today TMTG submitted a routine filing that re-registers them on an S-3 form in order to keep the Company’s filings effective,” the company stated.
The company further explained, “In fact, there currently is no open window for any affiliate to sell shares.”
The SEC will need to approve the filing before stockholders such as Trump’s trust can sell their shares.
Earlier in the day, Trump had also posted a more general message of optimism: “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Trump’s ownership of Trump Media helped make him one of the world’s 500 richest people last year. According to Forbes’ Real-Time Billionaires List, the president currently has an estimated net worth of $4.5 billion.
Kathleen Clark, a government ethics law expert at Washington University School of Law, suggested that in previous administrations, a post like Trump’s might have triggered an investigation. However, she believes it’s unlikely to prompt any official reaction now.
“He’s sending the message that he can effectively and with impunity manipulate the market,” she said. “As in: Watch this space for future stock tips.”
Trump Media wasn’t the only company connected to the president that saw major gains. Tesla, which Trump publicly praised at a news conference outside the White House last month, saw its stock surge by even more than Trump Media, though only by two-hundredths of a percentage point.
The rise in Tesla’s stock added $20 billion to Elon Musk’s fortune. This came after Trump’s commerce secretary urged Fox TV viewers to buy Tesla stock following Trump’s news conference praising the company and its cars.
