President Trump’s Unpredictable Tweets Make Stock Market Susceptible to Huge Swings

Normally, economic news or financial results help stocks rise or fall. In this age though, all it takes to send the markets tumbling or soaring is a tweet or two from U.S. President Donald Trump. North American stocks have been rising and falling based on President Trump’s seemingly contradictory tweets regarding an economic stimulus plan needed to replace a federal aid program, which recently expired and left even more people out of work.

Do President Trump’s Tweets Affect the Stock Market?

When the U.S. President tweets, the world listens. Global stocks have been struggling to grasp what President Trump is going to do with regards to major economic stimulus, stimulus that even the Federal Reserve says the U.S. needs to pass to keep the U.S. economy moving forward.

On Tuesday, October 6, a day after being released from the hospital, President Trump tweeted that he ordered Treasury Secretary Steven Mnuchin to stop negotiating with House Speaker Nancy Pelosi until after the November elections.

Trump accused Pelosi of failing to negotiate in good faith after rejecting Mnuchin’s initial offer in their latest round of talks. Instead, he said he would pass a major stimulus bill after he wins the election.

Those tweets sent global stocks tumbling on Tuesday.

Just seven hours later, it appears that President Trump contradicted himself in a new string of tweets, calling on his administration to work with congressional Democrats to “IMMEDIATELY” approve $25 billion in new aid for the airline industry.

Less than 20 minutes later, the president tweeted that Congress needs to send $1,200 payments to millions of Americans and said he wanted immediate aid for small businesses.

The stock market rebounded on Wednesday morning after it appeared some financial aid would get to Americans before the election. But then more uncertainty set in when Chief of Staff Mark Meadows told reporters that morning that “The stimulus negotiations are off.”

Or are they? Drew Hammill, a spokesperson for Nancy Pelosi tweeted that Mnuchin asked Pelosi whether they could do a standalone agreement on relief for the airline industry.

In the midst of all this uncertainty, the stock market continues to struggle as investors try and determine what exactly President Trump’s tweets are signalling with regards to what his government should do to support the ailing U.S. economy.

This shows just how much power President Trump’s tweets have. And how you cannot predict, with any certainty, how the markets are going to respond. And this is just one example.

That’s not going to change any time soon. With the U.S. Presidential election less than a month away, investors can expect President Trump to continue to tweet. This will make the stock market susceptible to huge swings, making it a difficult environment to trade in.

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Global markets have been on a rollercoaster ride following a number of tweets from President Trump. This goes to show, once again, how much influence President Trump’s tweets have on the stock market. It also shows that these tweets are just another factor to consider when investing; unfortunately, it’s impossible to predict what President Trump, or any politician, is going to tweet. Fortunately, the trading experts at Learn-To-Trade.com can teach you how to profit no matter what the markets are doing.

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