"Trump put options" rekindle, S&P 500 index surges.

Over the past month, investors who followed the "buy" advice of US President Donald Trump have enjoyed one of the largest increases in the S&P 500 index. After Trump announced tariffs on April 2nd, the benchmark index plummeted. However, in the month following his statement on April 9th that it was a "good time to buy," the S&P 500 index rose by 14%. Trump reiterated this view on May 8th, stating that the economic outlook warranted buying stocks in a big way. After Trump issued the "buy" directive, the S&P 500 index surged. According to data compiled by Bloomberg, based on a 21-day rolling calculation (the number of trading days between the two speeches), this is the largest increase in the S&P 500 index during Trump's presidency. The data does not include the stock market rebound during the COVID-19 pandemic. Arun Sai, Senior Multi-Asset Strategist at Pictet Asset Management, said, "It is clear that Trump's Put options are back in play. But we won't read too much into it. Yes, the way he does it is a bit peculiar, but ultimately it is the market digesting some form of 'backstop' expectation from the White House." A few days after Trump's second suggestion to buy stocks, the US and China announced on Monday that they would temporarily reduce tariffs, causing the Nasdaq Composite Index to rise by almost 4% and the S&P 500 index to rise by nearly 3%. While it is not common for world leaders to provide financial advice on social media platforms, the first term of Trump's presidency was characterized by constant tweeting, threatening to impose tariffs and sanctions on major trading partners. His posts became essential reading for global investors. This time, Trump signaled to the market before a key policy reversal. Due to concerns about a global trade war breaking out, the S&P 500 index plummeted by 12% in the four days ending on April 8th. Trump had repeatedly insisted that his policies would not be affected by market fluctuations. However, on April 9th, he announced a 90-day delay in implementing tariffs on most countries.