Investing $1,000 in S&P 500 upon Trump's statement, "this is a great time to buy," yielded the following profit:
In a series of dramatic events that unfolded in early April 2025, the S&P 500 experienced a significant rally following a tariff pause announcement made by the administration, led by President Donald Trump. This policy shift, which temporarily paused tariffs for all countries except China, came after Trump's encouragement for investors to buy stocks, which helped to stem the market's decline following the imposition of "Liberation Day" tariffs on April 2.
The rebound and subsequent climb in the S&P 500 have been noteworthy, with the SPDR S&P 500 ETF Trust (SPY) — a fund that tracks the S&P 500 index — rallying significantly since April. At the time, the SPY was trading at $496 per share. As of the close of the late trading session, the SPY is currently trading at $625, representing a substantial increase of approximately 26% for an investor who followed Trump's advice and invested $1,000 in SPY at $496 per share.
However, the market events and Trump's buy recommendation have raised concerns about potential insider trading by members of Congress. Reports have shown a significant surge of stock trading activity related to these announcements and market events, with more than a dozen House lawmakers and their families making numerous trades involving companies like JPMorgan Chase, Visa, Honeywell, and MKS Instruments during the volatile period leading up to April 8.
One notable case is US Defense Secretary Pete Hegseth, who sold 23 stocks nine days before the tariff announcement, avoiding large losses as those stocks plummeted afterward. This timing has fueled suspicion that some politicians used non-public information to time their trades advantageously.
The pattern of profitable stock trading by members of Congress during periods of market-moving political events has led to bipartisan calls for banning or strictly regulating congressional stock trading. Reports highlight that members of Congress have outperformed broad market indices by large margins, raising questions about access to privileged information. Legislation such as the TRUST in Congress Act is gaining support as an effort to prohibit insider-like trading by lawmakers, with backing from figures across the political spectrum, including former President Trump.
As the investigation into these allegations continues, the focus remains on restoring public trust and preventing conflicts of interest in Congress. With the S&P 500 rallying significantly since April, the spotlight is on the potential impact of political decisions on financial markets and the need for transparency and accountability in Congress.
- The rebound in the S&P 500, following President Donald Trump's tariff pause announcement and his encouragement for investors to buy stocks, has led to a surge in investing activities in the stock-market, with many individuals, including members of Congress, engaging in stock-market transactions.
- The subsequent uptick in the S&P 500, as well as the significant increase seen in the SPDR S&P 500 ETF Trust (SPY), has sparked political concerns regarding potential insider trading by members of Congress, particularly after reports of increased trading activities related to market-moving political events.
