How Tweets Can Influence Financial Markets

Tweets & Financial Markets

Financial markets have nothing to do with Twitter… right? Actually, the opposite is true. Here at Contentworks we can confirm that the rise of social media greatly affects financial markets and vice versa. Twitter is one of the top social media marketing channels for forex and stock traders due to the way it can swiftly deliver minute to minute information, it can also provide accurate indicators for those looking to jump into a particular financial market. For financial services brands, this information is crucial. If your potential clients are avid social media users, then you should be too.

Why Tweets Matter To The Financial Markets

Twitter is not just a fun social media network where memes circulate and users tweet hashtags about coffee. Twitter can mean big money for financial services companies and investors especially when the big boys start tweeting. Below are three examples of how a tweet can move the markets.

Case One

In 2013, a train crash in Maryland was followed by a barrage of tweets that led train company CSX to lose $500 million in market cap over the next hour and a half.

Case Two

Prominent investor Carl Icahn tweeted about his position on Apple, which triggered a sharp rally for the company’s stock and an increase of $17 billion in its market cap.

Case Three

image of donald trum tweet about boing costs for airforce 1Last December, Donald Trump tweeted about Boeing’s out of control costs for a new Air Force One, causing a nasty plunge in company share prices: “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” he tweeted. A few days later, the Donald tweeted that Japan’s SoftBank has committed to investing $50 billion in the U.S. and caused a stock price surge for Sprint, which SoftBank has a majority stake on.

Aside from tweeting about individual companies, Donald’s take on government policy and fiscal stimulus also has a strong impact on stock indices or local currencies. Take a look at the Mexican peso, which slipped almost nonstop after Trump gained a lead in the polls back in 2016 and eventually secured victory in the Presidential elections.

Why Investors Are Using Twitter

  • To follow key announcements like the NFP & EUR announcements
  • To track currency movements on their favourite pairs
  • To chat with other traders and brokers
  • To compare trades and strategies
  • To tweet their trading successes
  • To pre-empt market movements before they occur

How Financial Services Brands Can Grab A Piece Of The Action

Knowing that influential leaders and potential clients are using social media is not enough if you’re a financial services brand. Contentworks helps you to connect with investors, join the Twitter buzz and stay ahead of the latest market news. Our Rockstar solution, designed exclusively for financial services companies will take your content and social media marketing to a whole new level.

  • Connect you with financial services influencers
  • Tweet the latest finance and political news from your account
  • Promote your solutions using the right hashtags & keywords
  • Gain valuable followers for your Twitter account
  • Keep your content marketing on trend

Tweets can and do influence the financial markets but yours can too. Discover how to utilise the power of your Twitter account with Contentworks. Chat with us now.

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