Following President Donald Trump’s announcement on Wednesday afternoon regarding a 90-day pause on country-by-country tariffs, various experts, critics of Trump, and social media users have begun to question a statement he made earlier in the day, which may have hinted at an end to the recent significant stock sell-off.
Shortly after the market opened at 9:30 a.m. on Wednesday, Trump posted on his Truth Social platform:
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Just four minutes later, he added:
“THIS IS A GREAT TIME TO BUY!!! DJT”
By 1:30 p.m., Trump announced the tariff pause, leading to a surge in stock prices. The Nasdaq, heavily weighted in technology stocks, saw its largest single-day gain since 2008, soaring nearly 12%. The S&P 500 increased by 9.5%, while the Dow Jones Industrial Average jumped 8%, roughly translating to 2,800 points.
Trump might have been generally encouraging people to invest in the market while it was relatively low. This was the explanation given by Commerce Secretary Howard Lutnick when asked about Trump’s posts later that evening on CNBC.
“Donald Trump understands that … America is the greatest country, all right? We have the potential for incredible greatness. But someone needs to take the shackles off,” Lutnick stated.
However, some social media users speculated — without evidence — about potential market manipulation, coining the term “Trump Pump” to describe the sharp upward shift in the market.
There’s no evidence indicating that Trump intended to manipulate the markets or that he or his advisers acted on insider information.
Richard Painter, the chief ethics lawyer for former President George W. Bush and now a teacher of government ethics and security regulation at the University of Minnesota’s law school, noted that Trump’s morning posts raise questions about his motivations.
“This scenario might expose the president to accusations of market manipulation,” Painter commented.
Even before his second term began, Trump faced allegations of insider trading in connection with his $TRUMP meme coin launch. In this instance, the Trump Organization made it clear that certain investors involved in the coin’s launch would benefit if the price increased. Reports indicated that some investors made substantial profits from the launch, including one crypto-wallet holder who reportedly gained $109 million, based on a New York Times analysis.
Some Democrats were quick to criticize Trump’s actions on Wednesday.
Sen. Richard Blumenthal, D-Conn., told NBC News that the Trump administration is filled with “grifters” and that “corruption is its middle name.”
“Insider trading poses a serious threat, and I hope there will be a surge of thorough investigations into the possibilities of manipulation and insider trading of securities,” Blumenthal stated, “as the knowledge of Trump’s plans is widespread.”
Sen. Adam Schiff, D-Calif., who is frequently targeted by Trump, also called for an inquiry.
“Trump is causing significant market fluctuations with his inconsistent tariff policies,” Schiff wrote on social media. “These frequent policy shifts create risky opportunities for insider trading. Who in the administration was aware of Trump’s latest tariff changes in advance? Did anyone trade stocks and profit at the public’s expense? I will be writing to the White House — the public has a right to know.”
A White House representative dismissed the Democrats’ accusations.
“It is the duty of the President of the United States to reassure the markets and the American people about their economic security amidst continuous media fearmongering,” said White House spokesman Kush Desai in a statement. “Instead of resorting to unfounded attacks on President Trump, Democrats should collaborate with the administration to restore American greatness.”
A spokesperson from the Justice Department declined to comment, and the Securities and Exchange Commission did not respond immediately to a request for comment.
Painter noted that the situation could lead to investigations regarding who had advance knowledge of Trump’s decision to delay tariffs on all countries except China.
“Making those posts was a poor decision,” Painter remarked regarding Trump’s comment about it being “a great time to buy.”
Painter further cautioned Trump, expressing, “I hope he concentrates on fulfilling his responsibilities — calming the markets, promoting a predictable trade policy, and allowing the markets to operate without the White House seeming to offer investment recommendations.”
