The public feud between Donald Trump and Elon Musk has become a significant factor in trading. Their recent dispute over a spending bill and public insults have directly impacted financial markets. Tesla's stock, particularly, saw a sharp decline – over 14% – wiping out billions in market value as investors reacted to the uncertainty and potential threats of government contract cancellations.
Beyond Tesla, the spat also rippled into the broader crypto market, with Bitcoin experiencing a dip. Musk's influence on crypto through his tweets and opinions is well-documented, and Trump's political actions can also sway investor sentiment. Traders now face an added layer of volatility, as statements from these two influential figures can trigger rapid price swings and shifts in market confidence
