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A rapid rise in the stock market following President Donald Trump’s Truth Social post encouraging Americans to buy stocks — shortly before his surprise announcement easing tariffs — has sparked a growing demand among Democrats for a federal investigation into possible insider trading or market manipulation.
At the center of the controversy is Trump’s Wednesday morning post:
“THIS IS A GREAT TIME TO BUY!!! DJT”
Just hours later, Trump announced a rollback of new tariffs, excluding China, prompting a dramatic market rally:
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Nasdaq: +11.8%
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S&P 500: +9.5%
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Dow Jones: +8%
Now, House and Senate Democrats are raising serious ethical and legal concerns.
“We need to get to the bottom of the possible stock manipulation that is unfolding before the American people,” said House Minority Leader Hakeem Jeffries (D-NY). He questioned whether any members of Congress had advance knowledge of the tariff pause and potentially acted on it.
Investigation Requests Pile Up
A letter signed by 19 House Democrats, led by Rep. Maxine Waters (D-CA), has been sent to SEC Chair Paul Atkinsand other federal watchdogs, demanding an immediate review. NBC News obtained the letter, which outlines concerns about possible material, nonpublic information being leaked prior to the announcement.
Separately, Sen. Elizabeth Warren (D-MA) called for an independent investigation — not led by either party — into who may have traded on insider information.
“We need a full independent investigation into who was trading, who made money, who knew what, and when they knew it,” Warren said.
In the Senate, Sens. Adam Schiff (D-CA) and Ruben Gallego (D-AZ) sent a request to U.S. Trade Representative Jamieson Greer and White House Chief of Staff Susie Wiles asking if Trump, his family, or any administration officials participated in illegal trading activities around the tariff announcement.
Congress Members Under the Microscope
Rep. Alexandria Ocasio-Cortez (D-NY), a vocal critic of congressional stock trading, co-sponsored a bill earlier this year to ban members of Congress from trading individual stocks. On Wednesday, she posted:
“Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now.”
She added that lawmakers have until May 15 to file their next financial disclosure reports — a date now seen as a key benchmark for transparency.
Trump Allies Defend His Actions
The White House has pushed back hard, saying Trump was acting within his role to reassure markets during economic turbulence, and accused Democrats of politicizing normal presidential communication.
“It is the responsibility of the President… to reassure the markets and Americans about their economic security,” said White House spokesperson Kush Desai, calling Democrats’ criticism “partisan games.”
Sen. John Cornyn (R-TX) dismissed the allegations as unfounded:
“They miss no opportunity to take a dig at President Trump … any idea of insider trading is ridiculous.”
The Legal Gray Zone
While there is currently no public evidence that Trump or any lawmakers traded on nonpublic information, experts say the timing raises red flags.
Presidents are not subject to the same insider trading laws as corporate executives, but if nonpublic decisions were shared with allies who profited from trades, that could trigger violations of federal securities law.
The SEC and GAO have acknowledged receipt of the Democrats’ requests, but have not publicly committed to an investigation.
What’s Next?
This episode is shaping up to be a high-stakes ethics test for Congress, the White House, and federal regulators. With millions watching the markets — and Washington — both sides are gearing up for a legal and political battle that could shape how presidential influence over economic policy is scrutinized in the future.
As financial disclosure deadlines near, lawmakers from both parties may soon face increased pressure to explain recent trades — or lack thereof — in the wake of Trump’s post and tariff pivot.
