CNBC Analyst: Trump’s Trade Policies Spark Renewed Short-Selling Surge on Wall Street
AI Summary:
CNBC financial analyst Jim Cramer has linked recent market irregularities to former President Donald Trump’s trade policies and nationalist rhetoric, claiming these factors have reignited a wave of short-selling activity on Wall Street.
As reported by Mars Finance, Cramer explained that Trump’s unpredictable trade announcements have led to recurring “sell-offs at market open,” as traders prepare for possible negative comments affecting global trade or key companies like Apple.
“There’s a clear driver behind recent market missteps: the president’s tariff stance and nationalist approach toward global partners continue to unsettle trading behavior,” Cramer said. He added that this environment has encouraged short sellers—especially hedge funds targeting major tech stocks like Nvidia and CoreWeave—to bet on volatility caused by political uncertainty.
However, Cramer warned that this short-selling strategy is risky and fragile, potentially causing heavy losses when Trump holds back from market-moving remarks. “Trump has nearly single-handedly revived the short-selling game,” he noted, cautioning that strong corporate earnings are often overshadowed by political noise.
He concluded that while shorting stocks during political turmoil may appear lucrative, it risks overlooking fundamental business strengths, which can lead to misguided trades and disappointing long-term results.
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