U.S. stocks rally collectively! Barron Trump bets millions on short positions as the Nasdaq digests "Black Tuesday" losses

U.S. stocks closed higher across the board on November 5th, with the Dow Jones Industrial Average up 0.48%, the S&P 500 rising 0.37%, and the Nasdaq gaining 0.65%. However, overnight, the Nasdaq plunged 2%, marking its largest monthly drop, and the trigger for this “Black Tuesday” was surprisingly linked to Donald Trump’s youngest son, Barron Trump. He bought put options worth $10.9 million on the Nasdaq 100 ETF, set to expire on December 31.

“Black Tuesday” Sparks Global Stock Market Chain Reaction

On November 4th, the Nasdaq suddenly dropped 2%, the biggest single-day decline in nearly a month, turning what was a good trading day into a “Black Tuesday.” Even more astonishing was the chain reaction: the next day, markets in Japan and South Korea opened and immediately collapsed. South Korea’s market hit a circuit breaker with a free-fall, while the Nikkei broke below 50,000 points, leaving global investors stunned.

Two key clues are behind this sharp decline. One involves legendary bear investor Michael Burry—famous for accurately shorting the U.S. housing market in 2008—who has once again taken action. He spent over $1 billion buying 1 million shares of Nvidia and 5 million shares of Palantir as puts, betting 80% of his fund’s positions on these stocks. Nvidia, a top player in AI, has surged 55% this year and recently surpassed a $500 billion market cap; Palantir’s stock soared 157% year-to-date.

Burry’s moves caused Nvidia and Palantir to fall for two consecutive days—Nvidia down nearly 4%, Palantir nearly 8%. Palantir’s CEO publicly criticized, “This is madness—these are highly profitable, innovative companies!” Some speculate Burry is betting against the AI bubble, especially since he previously posted a “Big Short” meme warning of risks, and pointed out that current tech investment frenzy resembles the dot-com bubble of 2000.

Another explosive clue involves Barron Trump’s multimillion-dollar short positions. Just last month, on October 11th, before the crypto crash, a mysterious trader reportedly shorted heavily and made $190 million—widely believed to be Barron Trump. Now, after just buying put options, the market crashes again, and such precision suggests it’s not mere luck.

Are the Trump father and son playing a double game?

Even more bizarre, while U.S. stocks tumbled, President Trump delivered a confident speech at a breakfast with Republican senators, claiming, “Our economy is in its hottest period in history. The government shutdown has affected the stock market, but as of last Friday, the market has hit new highs multiple times over the past nine months—and it will hit new highs again. This is just the beginning. Once factories start operating, things will be even different.”

It’s worth noting that the longest U.S. government shutdown on record ended on November 5th, lasting 36 days. Trump’s optimistic tone seems aimed at calming markets, but his son Barron is actively shorting stocks. This contradictory behavior raises suspicions of a double game: Trump publicly promotes retail investor enthusiasm, while Barron secretly shorts the market for profit. If this isn’t coordinated, it’s a highly sophisticated financial maneuver.

Latest data shows the U.S. labor market is showing signs of recovery. According to ADP’s Wednesday report, October employment increased by 42,000 jobs—the largest gain since July 2025—and exceeded expectations of 32,000. ADP Chief Economist Nela Richardson noted that private employers added jobs for the first time since July last year, but the hiring pace isn’t rapid compared to earlier in the year. Wages have been relatively flat for over a year, indicating a balanced supply and demand.

This ADP data could influence the Fed’s next rate decision. Fed Chair Jerome Powell previously stated that there are “strong disagreements” among committee members about whether to cut rates again in December, and a decision is not guaranteed.

Supreme Court Debates Legality of Trump’s Tariffs, Deciding His Fate

The moment has arrived to determine the fate of most tariffs announced by the Trump administration this year. On Wednesday, November 5th, the U.S. Supreme Court held oral arguments on the legality of President Trump’s broad tariff measures. During intense hours of debate, Chief Justice John Roberts and Trump appointees Amy Coney Barrett and Neil Gorsuch sharply questioned the government’s stance.

The core issue is whether Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs on nearly all trading partners is lawful. The law grants the president emergency powers over imports but does not explicitly authorize tariffs. Trump warned that a ruling against him would be “a matter of life and death” for the U.S., and an unfavorable decision could have “catastrophic” economic consequences.

The court is not expected to rule immediately; a decision is anticipated by late June next year, possibly sooner. If the court rules against Trump, his administration would need to rely on other, more limited tariff laws and could face hundreds of billions of dollars in refunds. U.S. Treasury Secretary Janet Yellen previously warned that if the court finds tariffs illegal and delays ruling until next summer, the U.S. might have to refund at least $750 billion.

The Trump Family’s Financial Powerhouse: A History of Massive Profits

Calling the Trump family a “financial powerhouse” is no exaggeration. Trump himself has gone from crypto skeptic to “sales king,” with the family involved in NFTs, cryptocurrencies, and Bitcoin mining companies—netting nearly $1 billion in gains. His eldest son, Donald Jr., is even more aggressive, investing in “penny stocks” that often double or triple in value.

The Trump Family’s Financial Operations Record

Donald Jr. and Media Company: On April 15, 2025, Donald Jr. and his wife Lara Trump announced a partnership with the conservative media network Salem Media Group, causing the stock to surge nearly 300%.

Advisory Board Effect: On February 11, 2025, Donald Jr. and Eric Trump were appointed to the advisory board of small financial firm Dominari Holdings, whose stock soared over 300% within a week.

Barron Trump’s Precision Shorting: On October 5, 2024, Barron Trump used a Delaware-registered offshore shell company, BDT Capital, to buy 5 million shares of put options on Nasdaq-listed Coinbase (COIN). Within 48 hours, he netted $203 million.

Now, Barron Trump’s ability to pinpoint market turning points is terrifying. Some netizens joke, “Warren Buffett would be lighting a cigar, George Soros would step aside—Trump’s family is the real stock market gods!” It’s a tough break for retail investors—one day they’re celebrating AI stocks, the next day they’re being taught a lesson by the market.

On November 5th, U.S. stocks rebounded, with most big tech stocks rising. Google jumped over 2%, hitting a new closing high; Tesla surged over 4%. However, Nvidia dipped nearly 2% in late trading, and AMD plunged over 11%, indicating the market is still digesting the impact of Barron Trump’s shorting activities.