Democrats accuse Trump of potential market manipulation

President Donald Trump faced accusations of potential market manipulation after a series of social media posts preceded his announcement of a reversal on tariffs. The president’s messages on Truth Social, a platform he frequently used to communicate with his followers, hinted at forthcoming events that triggered stock market reactions.

At 9:33 a.m., Trump reassured his audience, stating, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Shortly after, he encouraged investment with, “THIS IS A GREAT TIME TO BUY!!! DJT.” This cryptic messaging was followed up at 1:18 p.m. by an official announcement from Trump that he would be suspending numerous tariffs. The president stipulated a 90-day reprieve for countries that had not retaliated against the U.S. China notably did not receive this concession, as clarified by the Trump administration’s decision to impose a significant 145% tariff on Chinese exports to America.

In reaction to these revelations, U.S. trading markets experienced a historic surge, achieving some of their greatest gains since World War II. The S&P 500 index surged by 9.5%, the Dow Jones Industrial Average saw an increase of almost 3,000 points, and the Nasdaq composite rose by an impressive 12.2%. However, as the markets reacted positively to Trump’s tariff reversal, Democratic legislators raised concerns regarding potential insider trading practices.

Democratic lawmakers began scrutinizing who may have been privy to information regarding the tariff pause before the official announcement. Sen. Adam Schiff led this charge by urging an inquiry into potential insider trading activities conducted by the president, his family, or other administration members. Schiff collaborated with Sen. Ruben Gallego to reach out to the U.S. Office of Government Ethics and the White House chief of staff, seeking clarity on the matter.

In a statement released to Spectrum News, Rep. Alexandria Ocasio-Cortez voiced her apprehensions about the ethical and legal implications surrounding the sequence of events. Ocasio-Cortez underlined the need for transparency and accountability while further emphasizing the gravity of the situation. The allegations made by Democratic lawmakers shed light on the delicate balance required in ensuring fair and ethical practices within the financial markets.