President Trump's social media posts now pose reduced risks to equities and affect mainly intraday trading rather than sustained swings, Morgan Stanley told clients. JPMorgan's research reached the same conclusion for bond markets. Both banks are steering investors toward policy developments ahead of the November 2026 midterms.
Morgan Stanley equity strategist Ariana Salvatore flagged on July 17, 2026 that the president's social media posts now pose "reduced risks" to equities, mainly affecting intraday trading rather than triggering the kind of sustained market swings that defined earlier years of his presidency. Wall Street's biggest firms say investors have grown desensitized to those posts.
The desensitization traces back to April 2025
The turning point, according to Morgan Stanley's analysis, traces back to the post-April 2025 period, when the so-called Liberation Day sell-off rattled markets badly enough to serve as a collective learning experience for investors. After that episode, posts about trade tariffs, the Fed, and geopolitical tensions like the Iran conflict gradually lost their ability to generate panic or euphoria at scale.
The pattern repeated this month. Between July 17 and 19, 2026, Morgan Stanley observed markets largely unmoved by a stretch of posts covering exactly the topics that would have caused chaos two years ago.
JPMorgan's research independently arrived at the same conclusion for the bond market, finding that Trump's communications cause negligible reactions there, with the impact comparable to baseline volatility.
Single stocks still react
That does not make Trump's social media presence completely toothless. Morgan Stanley's analysis noted that individual stock endorsements can still create isolated price movements.
Posts mentioning specific companies like Dell, Micron, and Palantir have shown the ability to move those particular tickers, while broader indices have remained stable through these episodes.
Both banks point clients to policy before November
With the November 2026 midterm elections approaching, Morgan Stanley and JPMorgan are essentially telling clients the same thing: focus on concrete policy developments, not individual posts. Legislative agendas, actual executive orders, and measurable economic data points should drive investment decisions heading into November.
Source: Crypto Briefing
Trading involves risk.
Risk Disclaimer
