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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice. Along with other factors, it was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election. I only hope that long into the future I will be remembered by those who use and love TikTok. Thank you to Vice President JD Vance, and all of the others within my Administration, who helped bring this Deal to a very dramatic, final, and beautiful conclusion. I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision. PRESIDENT DONALD J. TRUMP”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s claim that TikTok has been “saved” under U.S.-aligned ownership could pressure direct social-media rivals like Meta (META), Alphabet’s YouTube (GOOGL), and Snap (SNAP), as investors may reassess their competitive advantage and user-growth assumptions, potentially weighing on their share prices. A stronger, politically endorsed TikTok might also introduce headline and regulatory volatility for the broader tech and communication-services complex, modestly impacting diversified vehicles such as QQQ, XLK, and XLC as analysts reprice digital ad spend distribution and platform risk. The apparent cooperation from China, implied by Trump’s thanks to President Xi, could be seen as a marginal positive for sentiment toward U.S.-China tech ties and may support Chinese internet exposure via funds like MCHI, although geopolitical and regulatory risks would remain significant.
Here are some of the stocks that might be affected:
Meta Platforms, Inc. ((META)),
Alphabet Inc. Class A ((GOOGL)),
Invesco QQQ Trust ((QQQ)),
Technology Select Sector SPDR Fund ((XLK)),
iShares MSCI China ETF ((MCHI)),
Snap Inc ((SNAP)),
Communication Services Select Sector SPDR Fund ((XLC)).