Markets Saw Surge In Trades Ahead of Trump’s Surprise Iran Post That Sent Prices Soaring

(AP Photo/Julia Demaree Nikhinson)

President Donald Trump’s surprise announcement on Monday that the U.S. and Iran are engaged in “constructive” talks to potentially end the ongoing conflict sent the stock market into a buying frenzy and led to the Dow closing up over 600 points. CNBC later reported, however, that on Monday morning, about 15 minutes before Trump’s post, some traders appeared to have already gotten the message that relief was coming to the market.

“I AM PLEASED TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST,” Trump wrote in a post on social media, which also sent the price of oil spiralling downward, ending the day over 10% lower.

“BASED ON THE TENOR AND TONE OF THESE IN DEPTH, DETAILED, AND CONSTRUCTIVE CONVERSATIONS, WHICH WILL CONTINUE THROUGHOUT THE WEEK, I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO POSTPONE ANY AND ALL MILITARY STRIKES AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS,” the president concluded.

“S&P 500 futures and oil futures flashed an unusual burst of activity early Monday minutes before a market-moving social media post from President Donald Trump,” reported CNBC’s Yun Li, adding:

At around 6:50 a.m. in New York, S&P 500 e-Mini futures trading on the CME recorded a sharp and isolated jump in volume, breaking from an otherwise subdued premarket backdrop. With thin liquidity typical of early trading hours, the sudden burst stood out as one of the largest volume moments of the session up to that point.

Last April, Trump’s repeated U-turns on his tariff policies, which also sent the market into wild swings, led to accusations of insider trading among those close to Trump. Sen. Adam Schiff (D-CA) “and other Democrats in Congress argue that the timing of Trump’s post raises ‘legal and ethical concerns,’ and that Trump should make clear who knew about his tariff reversal decision before he announced it, and if any of those people let others know about Trump’s decision,” reported Time Magazine at the time.

The U.S. Securities and Exchange Commission declined to comment to CNBC about the trades, which Li concluded “raised some eyebrows because whoever purchased a large amount of stock futures and sold or shorted crude futures at that moment made a lot of money just minutes later.”

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!