Senators Demand SEC Investigation into President’s Stock Market Manipulation

WASHINGTON, D.C. — A group of Democratic senators, led by Elizabeth Warren, is urging the Securities and Exchange Commission (SEC) to investigate potential insider trading and market manipulation linked to President Trump’s recent tariff announcements.

The request follows a tumultuous week for the U.S. stock market, which experienced significant declines before rebounding sharply after Trump advised on social media that it was a “great time to buy” stocks. This statement came just hours before he announced a 90-day pause on tariffs, an action that propelled the stock market’s recovery.

In a letter sent to SEC Chair Paul Atkins on Friday, senators including Minority Leader Chuck Schumer, Ron Wyden, Mark Kelly, Ruben Gallego, and Adam Schiff expressed concern that the President and his associates may have profited from prior knowledge of the tariff pause.

“We urge the SEC to investigate whether the tariff announcements, which caused the market crash and subsequent partial recovery, enriched administration insiders and friends at the expense of the American public,” the senators wrote. “It is unclear which officials had advance knowledge of the tariff plans, but insiders may have known that the market would improve.”

The letter highlights the volatility of the U.S. financial markets, which saw dramatic fluctuations amid the administration’s shifting tariff policies. Following a drop of more than 10% across multiple indices, the S&P 500 surged, marking its best day since the recovery from the 2008 financial crisis.

According to estimates, the bounceback added over $5 trillion in value to the global market on Wednesday alone. Elon Musk, among the wealthiest individuals, reportedly gained an estimated $36 billion from this rebound.

Warren addressed the gravity of the situation in a social media post, stating, “Did President Trump tip off big donors or family to cash in on his tariff chaos? Presidents are not kings.”

A key concern among the senators is whether members of Trump’s inner circle engaged in illegal stock trading practices. They further questioned the SEC’s ability to monitor and enforce regulations given the agency’s recent budget cuts and personnel reductions.

“It is unconscionable that as American families worry about their financial security, some may have profited from market volatility,” the letter reads. “The SEC must do its part to restore faith in the financial system.” 

This letter echoes a similar request from House Democrats, led by Maxine Waters, who have also demanded an immediate SEC investigation into possible misconduct surrounding Trump’s trade announcements.

“Insider trading by federal officials is a breach of trust,” the House letter stated. “There should be zero tolerance for this kind of corruption.”

The ongoing scrutiny of the administration’s trade policies arrives amidst broader concerns about corruption and the integrity of government officials. Lawmakers have called for transparency regarding stock trades conducted by members of both chambers during economically tumultuous periods.

Warren and her fellow senators have made it clear that they will continue to push for the SEC to take decisive action in light of these accusations, reinforcing the notion that accountability must be upheld at all levels of government.