The S&P 500 has rallied significantly since April, when President Donald Trump encouraged investors to buy stocks.
Notably, on April 9, as financial markets reeled from escalating trade tensions and a new round of tariffs, President Trump took to social media to urge calm. At the time, markets had been shaken by uncertainty surrounding the sweeping retaliatory tariffs.
When Trump declared that it was a “great time to buy,” the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, was trading at $496.
Trump’s statement coincided with a dramatic policy shift later that day when the administration announced a temporary pause on tariffs for all countries except China.
The market responded swiftly with a rebound, and SPY has since continued to climb. As of the close of the late trading session, the ETF is trading at $625.
Profits from Trump’s calls to buy
An investor who had taken Trump’s advice and put $1,000 into SPY at $496 per share would now be sitting on a profit of approximately 26%. The increase in share price from $496 to $625 represents a notable gain over just a few months, with the investment now valued at around $1,260.
While Trump’s timing raised questions on Capitol Hill, particularly regarding whether insiders may have had advance notice of the policy reversal, those who acted on his April 9 message would have seen a solid return.
Indeed, the combination of Trump’s buy recommendation and the subsequent market rally following the tariff pause has raised concerns about potential insider trading by members of Congress.
Several reports have emerged linking certain lawmakers close to Trump to possible stock purchases made just before equities rebounded.
Featured image via Shutterstock
