In the wake of President Donald Trump’s announcement Wednesday afternoon that he was pausing country-by-country tariffs by 90 days, some experts — as well as critics of Trump and social media users — are raising questions about a statement he posted earlier in the day that may have indicated the massive sell-off in stocks in recent days was coming to an end.
Not long after trading opened at 9:30 a.m. Wednesday, Trump took to his Truth Social platform and wrote:
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Four minutes later, he wrote:
“THIS IS A GREAT TIME TO BUY!!! DJT”
Just before 1:30 p.m., Trump announced the pause, sending stocks soaring. The tech-heavy Nasdaq index had its biggest one-day gain since 2008, rising nearly 12%, while the S&P 500 climbed 9.5% and the Dow Jones Industrial Average surged 8%, or about 2,800 points.
Trump could have been generally urging people to buy into the market while prices were relatively low. That was the response Commerce Secretary Howard Lutnick gave when he was asked about the posts Wednesday evening on CNBC.
“Donald Trump understands that … America is the greatest country, all right? We are the greatest country, and we have the capacity for incredible greatness. But someone needs to take the shackles off.”
But on social media, some users raised the prospect — without evidence — of market manipulation, while others began referring to the market’s sharp turn upward as the “Trump Pump.”
There is no evidence to suggest that Trump was seeking to manipulate markets or that he or any of his advisers acted on inside information
For Richard Painter, chief ethics lawyer for former President George W. Bush, who now teaches government ethics and security regulation at the University of Minnesota’s law school, the morning posts, at a minimum, leave Trump open to questions about his intentions.
“This is a scenario that could expose the president to accusations that he engaged in market manipulation,” Painter said.
Even before he’d been sworn in for his second term, Trump faced insider-trading criticisms amid the launch of his $TRUMP meme coin. In that incident, the Trump Organization was explicit that a group of investors who were helping launch the coin stood to benefit from its release assuming its price went up. Still, reports showed other investors reaping outsized profits from the launch, including one crypto-wallet owner or owners who earned $109 million, according to a New York Times analysis.
Some Democrats were quick to blast Trump’s actions on Wednesday.
"An insider trading scandal is brewing," Sen. Chris Murphy, D-Conn., posted on X.
Sen. Richard Blumenthal, D-Conn., told NBC News that the Trump administration is “replete with grifters” and that “corruption is its middle name.”
“Insider trading is a real threat, and I hope there will be a surge of penetrating investigations into the potential for manipulation and insider trading of securities,” Blumenthal said, “since the knowledge of what Trump’s plans have been and may be is widely spread.”
Sen. Adam Schiff, D-Calif. — a frequent object of Trump’s scorn — also suggested an inquiry was warranted.
“Trump is creating giant market fluctuations with his on-again, off-again tariffs,” Schiff wrote on social media. “These constant gyrations in policy provide dangerous opportunities for insider trading. Who in the administration knew about Trump’s latest tariff flip flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House — the public has a right to know.”
Rep. Alexandria Ocasio-Cortez, D-N.Y., pointed to the upcoming May 15 deadline for members of Congress to submit their financial disclosure reports, writing on X, "Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now. I’ve been hearing some interesting chatter on the floor."
A White House spokesman rejected the Democrats’ assertions.
“It is the responsibility of the President of the United States to reassure the markets and Americans about their economic security in the face of nonstop media fearmongering,” White House spokesman Kush Desai said in a statement. “Instead of grasping at straws to try landing a punch on President Trump, Democrats should focus on working with the administration to restore American Greatness.”
A Justice Department spokesperson declined to comment. The Securities and Exchange Commission did not immediately respond to a request for comment.
Painter said the incident could result in investigations “into who knew what and when before [Trump] announced he was going to postpone the tariffs on all the countries except for China.”
“This was a terrible idea to make those posts,” Painter said of Trump’s suggestion that it was “a great time to buy.”
Painter further admonished Trump, saying, “I would hope that he would focus on doing his job — and try to calm the markets and have a predictable trade policy and let the markets do their thing without the White House giving what appears to be investment advice.”
