Trump’s Social Media Moves and Market Impact

Donald Trump, the President of the United States, understands the global attention to his communication. He’s now monetizing this with Truth Social, selling early access to his posts to Wall Street operators.

Starting Saturday, Truth Social will offer previews of Trump’s social media posts, potentially creating significant profits for Trump’s business. This raises concerns about insider information and the use of public office for private gain. While other media sell similar high-speed services, Truth Social stands out by generating news that impacts markets when Trump announces policy shifts.

“If a CEO of a public company did this, they’d be jailed,” stated Irene Aldridge, director of Able Alpha Trading, who doesn’t plan to purchase the service.

Trump’s firm claims critics aren’t capitalist enough. When asked if White House lawyers reviewed the service, Trump’s press office declined to comment. Trump Media & Technology, Truth Social’s parent company, criticized Democratic critiques as misunderstanding free markets and public vs. non-public information.

Trump’s posts frequently cause market fluctuations, affecting stocks, bonds, and currencies. This benefits high-frequency traders who quickly buy and sell to profit from minor price changes. Recent threats on Truth Social, like tariffs on Canada or shifts regarding Saudi Arabia and Iran, highlight potential profits for traders positioned for currency or oil market responses.

Joe Saluzzi, co-founder of Themis Trading, predicts high-frequency firms will pay for the service, citing “market-moving information” as needed. Named Truth API, it arrives as firms invest in high-speed data channels and artificial intelligence tools for news and pricing changes.

Apart from policies, Trump’s endorsements of publicly traded companies trigger buying frenzies. Recent praise for Palantir Technologies and Intel boosted their stocks instantly. This interest in specific companies makes subscribing advantageous for Wall Street, noted Dylan Hedler-Gaudette of Project on Government Oversight.

Subscriptions are unclear, with major high-frequency firms remaining silent. If just three firms subscribe at $100,000 monthly, Trump’s company would double its previous year’s revenue.

Truth Social’s parent stock dropped 75% since Trump took office, amidst financial losses despite his frequent significant announcements driving traffic. The White House often shares his posts in response to media inquiries, underscoring his platform’s influence.

If Democrats gain congressional control, investigations into Truth Social’s operations could intensify, with Senator Elizabeth Warren signaling such intentions. Facing ongoing losses, there’s speculation Trump may further use the platform for political declarations.

“That will happen, absolutely,” warned Craig Holman from Public Citizen, highlighting Trump’s promotional savvy.