Trump’s tweets and Market sentiments: Who’s benefiting from it and how
Trump does it again. The current American President, who seems to have taken his tweets and Presidency to an all-time low, is out to settle the scores with other corporate, who are pointing fingers at his decisions. For someone as influential as him, he sure has made the stock market volatile with his “Tweeting” fluctuations.
Considering the changes which were coming forth with Trump’s tweets, there are a lot of doubts in the minds of the people. With millions of Trump’s Twitter followers, there is a lot at stake for the President-elect.
Recent examples which have rocked the stock market.
The tweet was aimed at Lockheed Martin Corp on Monday, at precisely 8.30 am. By afternoon, the $4 billion company market share was completely wiped off, as investors began to dump the shares one after another. This act was done after Trump criticised the company’s fighter jet program.
If trends are to believed, past Presidents have not singled out any particular companies or their products on social media platforms. Since traders rely on each and every word of influential personalities, there is a lot of volatility, which in turn can cause an uproar in the stock markets.
Boeing, another company which seemed to have fallen prey to the social media frenzy, experienced a lot of negative publicity which caused its share prices to dip drastically. Trump recently tweeted how the extended cost of building the Air Force One was spiralling out of control. Some other companies which have suffered the wrath of Trump’s tweets include major brands like Toyota Motor Corp., General Motors and Ford.
However, not all businesses are being side tracked by Trump. A company which recently benefited from Trump’s tweets is Texas-based Think Tank (T3). However, whatever profits they make off the tweets are donated by the company to the American Society for the Prevention of Cruelty to Animals. The company has created an automatic bot which is mapped to the President’s tweets, to help the company follow and act as required. This way, the company understands and gauges their next steps of action.
At the same time, the impact was not only on a single stock. Trump’s Monday tweet about Lockheed dipped Dow Jones U.S. Aerospace & Defense index trading numbers by 1.6% or 210 points.
With such upheavals happening at a moment’s notice, sensible traders are taking advantage of the volatility. The tweets, if analysed correctly, can help a trader and trading companies alike in understanding when to buy and when to sell their stock, to make profits. If rumours are believed, there are businesses and people who are working round the clock to create automatic bots, which can automatically track Trump’s tweets and increase the size of the data sets.
If such Tweets are going to form the new trend lines in the American history, there are high chances every word is speculated carefully, basis which decisions are taken. The stock price shifts might not be benefiting the President; however, his inner circle could rake in some extra dollars, by knowing what is going to happen when.
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