The Woke-Era comes to an end, and investors are deeply delighted; Trump Reign Begins

As Donald Trump re-enters the U.S. presidency, investors are preparing for the renewed influence of his social media posts on global markets

Trump, known for his frequent, unpredictable social media commentary, will likely continue using X (formerly Twitter) and his own Truth Social platform to communicate policies and perspectives, creating a high-stakes environment for market watchers. During his first term, Donald’s tweets—often unfiltered and sent at all hours—could send shockwaves through financial markets. His statements on U.S.-China trade tensions and threats to impose tariffs on allies sparked widespread volatility, leading to swings in everything from the dollar to major stock indexes and commodity prices. The dollar has surged since Donald’s election win. At the same time, the S&P 500 reached record highs, reflecting investor speculation about economic impacts, particularly regarding tariffs.

Echoing these sentiments, Matthew Haupt, portfolio manager at Wilson Asset in Sydney, notes that Trump’s market-moving posts, once dubbed “Twitter bombs,” could again sway investor sentiment. Trump’s “America First” approach, focusing on extensive tariffs, may hurt European and emerging markets. Investors, mindful of how Donald’s rapid and sometimes ambiguous postings fueled volatility in 2017 and beyond, are now watching both platforms for insights and signals. For instance, a single cryptic “covfefe” tweet once sparked speculation on trading floors, illustrating Donald’s ability to captivate and even confound markets. Chris Weston, head of research at Pepperstone Group in Melbourne, suggests that hedge funds may adjust their models to capture the impact of Donald’s renewed social media activity. With the potential for tariff negotiations to drive economic policy, market analysts anticipate a new wave of volatility.