Wall Street's Memories of "Trump Tweets" Are Back
During his presidency, Trump frequently used Twitter to influence the stock market, forcing fund managers to monitor his tweets for trading cues. Now, Trump is once again wielding his personal influence over the market.
Trump’s ability to "control" the stock market is formidable. He extensively used Twitter to praise or criticize various industries or companies, causing market volatility. For example, on February 19, 2020, the U.S. stock market hit a historical high, but shortly after, the pandemic struck, leading to a market crash.
![Wall Street's Memories of "Trump Tweets" Are Back](https://ussnsimg.moomoo.com/sns_client_feed/70636860/20240719/8e9ae6ac91d44744aad9230b105daf4e.jpg/big?area=100&is_public=true)
Typically, U.S. presidents avoid publicly commenting on specific companies to prevent market volatility. However, Trump did not follow this precedent. Since taking office in 2017, he sent over 200 tweets about the stock market, highlighting its gains during his term.
Whenever the market declined, Trump would blame it on political opponents, such as the Federal Reserve, the Democratic Party, and various media outlets. He openly criticized major U.S. companies and demanded rate cuts from the Fed to support the market during downturns.
Despite the turmoil caused by Trump's Twitter activity, the U.S. stock market performed well during his term. From the 2016 election to November 3, 2020, the S&P 500 index gained over 70%. This was largely due to Trump’s significant tax cuts, which offset the negative impacts of his communication style.
With Trump leading in the polls, there is speculation about whether his "Twitter governance" will return.
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