Morgan Stanley Says Donald Trump’s Social Media Posts “No Longer Move the Markets Like They Used To”
NEW YORK — Morgan Stanley says President Donald Trump’s social media posts no longer have the same impact on financial markets that they once did, suggesting investors have become increasingly desensitized to his online commentary.
The Wall Street firm noted that while Trump’s posts can still spark short-term volatility—particularly in individual stocks or sectors—the broader market is now far less likely to react unless the posts signal a meaningful policy change.
Subscribe to our newsletter for 24×7 Alerts!
Investors Have Become Desensitized
According to Morgan Stanley strategist Ariana Salvatore, one of the most common questions from investors has been whether an increase in President Trump’s social media activity ahead of the U.S. midterm elections could once again drive market swings.
The firm’s view is that the risk from headline-driven social media posts has diminished significantly, as markets have grown accustomed to frequent commentary on topics such as tariffs, the Federal Reserve, and geopolitical events.
Policy Matters More Than Posts
Morgan Stanley argues that investors should pay closer attention to actual policy decisions rather than social media commentary.
The firm believes legislation, executive actions, and other concrete policy developments are now more reliable indicators of market direction than individual posts on social media.
Market Reaction Has Changed
During Trump’s first presidency, individual tweets frequently triggered sharp moves in stocks, currencies, and other financial assets.
Today, Morgan Stanley says those reactions have become more muted, with many posts influencing only intraday trading rather than causing sustained market moves. However, the firm cautions that unexpected announcements involving major policy changes could still move markets significantly.
Conclusion
Morgan Stanley believes President Donald Trump’s social media posts no longer carry the same market-moving influence they once did, reflecting a shift in investor behaviour. While headline risk remains, the firm’s analysts say markets are now focused far more on concrete policy actions than on social media commentary.
Tags: Morgan Stanley, Donald Trump, Stock Market, Wall Street, Investing, Market News, Financial Markets, BusinessGeco, Morgan Stanley, Donald Trump, Trump social media, stock market, Wall Street, Ariana Salvatore, investors, market volatility, financial markets
