Has Trump manipulated Wall Street? They want to investigate it

On Wednesday, a wild party took place in the financial markets. Suffice the status US President Donald Trump. He reported in it that he was suspending dutieswhich is called reciprocal for 90 days.

It happened after seven o’clock in the evening of our time. And the events that have recently fallen sharply flew immediately like a rocket.

The largest US S&P 500 index fired up by 9.52 percent within four hours.

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It was the biggest one -day leap since 2008. Nasdaq technology jumped by more than twelve percent, in his case the biggest one -day leap since January 2001.

But what happened on Wednesday has a bitter flavor. There are indications that the financial market could be manipulated.

In the United States, it has been discussed whether the information about Trump’s step was used by close people who could earn it. The behavior in the option market suggests that this is not entirely excluded.

Profit in thousands percent

A few hours before the Trump’s temporary suspension decision on the Truth Social Social Network wrote that it is « the best time to buy ». He did so only seven minutes after the opening of the American exchanges.

The S&P 500 jumped by 1.5 percent in a few minutes, and it seems that some of Trump’s followers really listened to his words.

When Trump issued a second status four hours later, the Eldorado stock, in which the financial markets broke off from the chain, started. The sharp growth immediately splashed the next day on Thursday.

There is no direct evidence that someone in Trump’s surroundings would trade on the market based on confidential information. If some traders or members of his team were able to suspend the duties of Trump’s plan before its official announcement and used the information in trading, it would be a misuse of non -public information (Insider Trading), which is illegal and criminal.

Analysts from UNUSUAL WHales who follow detailed market trading data, SI noticedthat on Wednesday someone suspiciously placed well business orders, which made huge money.

A few minutes before Trump published status, the volume of so -called call options increased in the popular ETF SPDR S&P 500 ETF Trust from State Street. It is also known under the abbreviation Spy.

Similar shops were also done in parallel for the ETF Fund for the Nasdaq technology index – Invesco QQQ Trust and Proshares UltraPro QQQ.

Call options give the trader the right to buy the underlying asset at a set price. If someone opens them, it simply speculates in market growth.

Since these trades have taken place before Trump’s status, it suspects that some merchants could have known about the upcoming announcement that led to the rapid growth of markets.

In addition, the call options were so -called Zero DTES (Zero Days to Expiration). It is a type of option that expires on the day of their trading. The merchant speculated that Spy would grow above the set level (Strike Price) on the day he opened the call option.

If Strike did not reach the price, the call options would expire and the investor would make the money he invested in it.

In one case According to The Wall Street Journal The merchant invested $ 21,000 in call options when Spy was $ 500 and Strike had a price of $ 509. On that day, however, Spy flew to $ 546. If the store closed at this ideal level, he could theoretically earn $ 350,000.

UNUSUAL WHALES also points out when the investor has managed to earn 2100 percent of the original investment in this store. Whether it was a coincidence or an event that would be investigated is not known.

The opposition wants an investigation

On Thursday, democratic senators Ruben Gallego (Arizona) and Adam Schiff (California) sent a letter to the Office for Government Ethics in which they demand a federal examination.

They want to answer the suspicion whether some members of Trump’s administration or his family did not have information on the suspension of tariffs and did not misuse them for their own benefit.

« President Trump’s decision to alleviate most of the duties has caused financial markets to rise sharply and wild fluctuations. The president, his family and his advisers have a unique position to know and use non -public information for their investment decisions, » have been written by senators in a letter.

By the way, Trump holds a large part of his investment assets in Truth Social, Trump Media & Technology Group. This company is traded with Ticker DJT and belongs to the Truut Social Social Network. Through it, Trump informs about his decisions. DJT shares fired 22 percent on Wednesday.

The White House of Speculation about the market handling denied.

On Wednesday, when the stock exchanges grew, two billionaires visited the White House. In the video that came to social networks, Trump shows his finger at financial investor Charles Schwab and Nascar Roger Penský.

They tell them that one has just earned $ 2.5 million and the other $ 900 million. “It’s not bad!” Job was joking with a smile.

Potential market manipulation cases are first investigating exchanges, in which case it would be Nasdaq and New York Stock Exchange. Their internal investigators are looking for business anomalies and unusual business patterns of specific traders.

If they find evidence of unusual activity, they will suspect the securities and stock exchange commission to investigate the events and consider whether there is enough evidence to be able to accuse someone.