Trump’s ‘great time to buy’ tweet before tariffs pause sparks call for insider trade probe

Democrats have called for an insider trading investigation after stock markets soared following US President Donald Trump’s bullish messages just before his sudden pause on a rampaging tariffs policy.

One of the president’s posts shortly after the markets opened called upon Americans to buy into the market and included the ticker symbol of his own media company.

"BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!" he wrote, followed closely by a more direct appeal to investors: "THIS IS A GREAT TIME TO BUY!!! DJT."

Also Read: What prompted Trump’s 90-day pause on higher tariffs for most nations

Stock market soars

At the time of the posts, the markets were still reeling from a days-long selloff and trading hesitancy.

Within hours, however, Trump announced a 90-day pause on sweeping tariffs against multiple countries barring China, sending the financial markets soaring.

Dramatic gains

The tech-heavy Nasdaq had its best single-day gain since 2008, climbing nearly 12 per cent. The S&P 500 jumped 9.5 per cent while the Dow Jones Industrial Average gained 8 per cent.

Trump's media company outpaced even the major indices, closing up 22.67 per cent. That rally added USD 415 million in value to Trump's 53 per cent ownership stake in the company, held in a trust managed by his son, Donald Trump Jr.

Also Read: LIVE: Trump freezes tariffs for 90 days, ‘big relief’, say Indian exporters

Only one stock - Tesla, another favourite among Trump administration insiders - narrowly outperformed Trump Media on the day, edging it out by two-hundredths of a percentage point.

Seeds of suspicion

Senator Adam Schiff, a Democrat from California, was the first lawmaker to publicly call for an investigation into potential insider trading or market manipulation linked to Trump's remarks and subsequent tariff decision.

"I'm going to do my best to find out," he told TIME. "Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon."

Also Read: Sensex, Nifty fall amid global equity losses as fresh Trump tariffs take off

Schiff also alluded to earlier controversies involving the President, notably the launch of the $TRUMP meme coin, in which a select group of investors stood to gain from the coin's success.

Others follow

Schiff indicated he may pursue a preliminary inquiry through his own office, even if it lacks subpoena power.

Other Democrats too voiced unease.

"When my own barber asks me whether Trump is selling short or doing this to try to make money for himself, it shows that a lot of people are pretty suspicious about what's going on," Senator Tim Kaine of Virginia said.

'This is not a game'

Senator Tina Smith of Minnesota admitted she had not considered the possibility but said, "It's a great question. He certainly had a lot to gain."

In a congressional hearing held around the time of the announcement, Representative Steven Horsford of Nevada confronted Trump's trade representative Jamieson Greer, who had been staunchly defending the tariffs moments before the pause was announced.

Also Read: US stocks drop, Asian markets sink amid uncertainty over Trump’s tariffs

"This is amateur hour. You just got the rug pulled out from under you," Horsford said, demanding to know if the administration had intentionally moved the markets. "This is not a game. This is real life."

Trump’s response

Commerce Secretary Howard Lutnick defended Trump's posts.

"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," he said.

Also Read: ‘Will fight to the end’: China spews rage after Trump’s 50 pc tariff hike threat

Asked when he made the decision to suspend the tariffs, Trump gave conflicting responses, first saying it was made "this morning" before later adding it had occurred "fairly early this morning".