Trump's Stock Buying Advice Sparks Historic Market Rebound, Generating Windfall for Investors

On the morning of Wednesday, President Donald Trump issued a bold statement urging investors to buy stocks, positioning it as an opportune moment for investment. Just minutes after the opening bell, at 9:37 a.m. ET, Trump took to Truth Social to announce, "THIS IS A GREAT TIME TO BUY!!!" The post concluded with the letters "DJT," which not only represent the president's initials but also signify the ticker for Trump Media & Technology, the parent company of Truth Social, in which he holds a majority stake.

In a remarkable turn of events, Trump's exhortation to buy stocks coincided with a significant rebound in the market, following his announcement to roll back some of the previously imposed tariffs. The unexpected reversal came after the unveiling of his plan to tax imports had initially caused turmoil in the market, leading to considerable declines.

Market Surge Following Trump's Post

The release of Trump's post at 9:37 a.m. ET proved to be a pivotal moment for investors, as it marked the beginning of a historic surge in stock prices. The SPDR S&P 500 ETF Trust (SPDR), which tracks the namesake benchmark index, traded as low as $494.11 at the time of Trump's post. However, in a remarkable turnaround, the SPDR climbed to $548.62 at session highs, reflecting an impressive 11% jump from its position when the president's advice to buy was disseminated.

For those who seized the opportunity and invested $1,000 in the SPDR at that moment, the potential return was substantial, with the holding peaking at approximately $1,110. Notably, the SPDR finished the session with a remarkable gain of 10.5%, marking its largest one-day increase since 2008.

Trump Media & Technology and Tesla Experience Significant Gains

Trump Media & Technology also experienced a notable impact from the president's post, with shares initially surging after the reference to his initials. The stock, which fell to $16.69 in the minute following Trump's announcement, subsequently soared to a high of $20.40, reflecting a remarkable jump of around 22.2%. By the end of the session, the stock had finished up by more than 21%, marking its strongest day of the year.

For investors who capitalized on the opportunity and injected $1,000 into Trump Media & Technology at the moment of the post, the potential return was significant, with the stock reaching a peak of approximately $1,222 at highs of the day.

Tesla, a company entwined with the Trump administration due to CEO Elon Musk's involvement in the government efficiency initiative, also saw substantial gains. The electric vehicle maker's shares traded as low as $226.27 in the minute following Trump's post but surged to a high of $274.69 in afternoon trading, reflecting a remarkable 21.4% gain. Overall, Tesla shares soared more than 22% during the trading day, marking its best session since 2013. Investors who seized the moment and invested $1,000 at the time of Trump's post could have sold for around $1,214 at session highs.

Market Response and Reactions

Despite the impressive gains on Wednesday, it is essential to note that stocks remain under pressure compared to their positions prior to Trump's initial announcement of broad and steep levies. Even with the S&P 500's jump of more than 9% on Wednesday, the index is still down 3% compared to a week ago.

The news of the market's rebound generated considerable buzz on forums for retail investors, particularly on Reddit's WallStreetBets page. One user proclaimed themselves "psychic" for having invested a retirement account holding into the market on Tuesday. However, not all reactions were positive, with some commenters equating Trump's actions to market manipulation, expressing skepticism about the implications.

In the midst of the trading frenzy, discussions surrounding potential insider trading emerged, with some users questioning the wisdom of anyone within the White House who failed to capitalize on the situation. The sentiment reflected a mixture of excitement and skepticism within the investor community.