Trump's Social Media Posts Shift Focus Away from Stock Market
In his second presidential term, President Donald Trump has significantly reduced his mentions of the stock market on social media. A study by JPMorgan strategist Antonin Delair analyzed 126 of Trump's posts since Election Day and found that mentions of the market have "disappeared."
Unlike his first term, when Trump frequently highlighted positive economic developments and stock market performance, he now focuses on issues such as the debt ceiling, government spending, and tariff benefits. Delair noted that out of 23,073 tweets in Trump's first term, 156 (57%) mentioned a strong stock market, while since his reelection, he has mentioned it only once.
Delair's research assessed the impact of Trump's posts on the foreign exchange market and found that only 10% of his 126 posts have been FX market movers. However, "Hawkish tariff posts can trigger a broad dollar rally," Delair said.
Despite the stock market's proximity to record highs, other concerns are consuming more of Trump's social media time. The US budget deficit has reached $1.83 trillion, the highest outside of the COVID-19 period.
Elon Musk's DOGE team has also been targeting government agencies, aiming to cut spending and programs deemed wasteful. Salesforce's Marc Benioff emphasized the importance of balancing the budget.
Meanwhile, Trump is shaping a tariff policy that may define his second term. The administration has imposed a 25% tariff on steel and a 10% tariff on Chinese imports. China has retaliated with tariffs on chips and metals.
Trump's recent pause of tariffs on Canada and Mexico has been met with uncertainty in the automotive industry. Ford CEO Jim Farley has warned that protracted tariffs would severely impact the sector and lead to increased consumer prices.