Trump’s reversal on tariffs triggers $6.5 trillion market rally amid allegations of manipulation

Donald Trump is no stranger to making bold moves, with his recent tariff u-turn causing quite a stir in the financial world. His cryptic social media post stating, “THIS IS A GREAT TIME TO BUY!!! DJT,” sent shockwaves through the market as uncertainty loomed. However, less than four hours later, Trump announced a 90-day pause on nearly all tariffs, sparking an immediate and dramatic rally in US shares.

US markets experienced a significant jump, with shares soaring by 9.5% or $6.5 trillion, marking the strongest rally since the Global Financial Crisis. This remarkable turnaround managed to recoup about 70% of the value lost over the previous four days, prompting many to question the true motives behind Trump’s actions.

The White House swiftly denied any claims of market manipulation, attributing Trump’s decision to a tariff negotiation tactic. However, many skeptics remain unconvinced, seeing Trump’s dual roles as both the President and a major player in the share market as a clear conflict of interest.

It’s worth noting that Trump’s social media message utilized the share market code of his own company, Trump Media & Technology Group, parent company of Truth Social. Shares in Trump Media surged by 22.7%, significantly outpacing the broader market. Trump, who owns a 53% stake in the company, saw his investment rise by $671 million in a matter of hours.

Despite the impressive rally, questions surrounding Trump’s ethical and potentially legal behavior continue to linger. Accusations of insider trading have been thrown around, although publicly announcing his decision to pause tariffs somewhat shields him from this accusation. However, the fine line between providing financial advice and manipulating markets remains a subject of scrutiny.

Trump’s somewhat unpredictable decision-making process further adds fuel to the fire. His sudden change of mind, reportedly influenced by watching developments in the bond market and an interview with JPMorgan chief executive, Jamie Dimon, showcases the unorthodox approach to making crucial economic decisions. Trump’s quick pivot after witnessing market fluctuations raises eyebrows among many seasoned market watchers.

Looking ahead, uncertainties still loom large as the trade war between the US and China continues to unfold. The 90-day tariff halt provides a brief respite, but the underlying tensions persist. With a universal 10% tariff now in place across the board, the US economy and inflation rate face further challenges. The impending negotiations will be crucial in determining the future direction of global financial markets.

Regardless of the outcome, one thing remains clear – the Trump administration’s unorthodox handling of financial matters has left a lasting impact on investors worldwide. The aftermath of this tariff saga serves as a stark reminder of the volatile nature of financial markets and the importance of sound economic policies to navigate uncertain waters.