Analysts found that Trump's tweets have significantly increased volatility. They say the frequency of Trump's marketing tweets "ballooned" in August, and that US rates markets are getting more attention. This drives the need for a model to detect market-moving tweets and track results, they said.
"The theme of these tweets has increasingly turned to market-moving themes, most prominent trading and monetary policy," the analysts said. "And we find strong evidence that tweets have increasingly moved the US stock markets immediately after publication."
JPMorgan does not include specific Trump tweets in its report introducing the index, but does identify a series of trigger words for markets. These include "China", "billions" and "products."
The bank admits that the model is "barely a tweet savant" ̵