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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Foreign direct investment in China slides 9.5% in 2025:”
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 amplification of a sharp drop in FDI into China could heighten investor concerns about China-related demand and supply-chain risk, pressuring China-exposed names and funds like BABA, MCHI, and broadly the industrial/financial sector ETFs (VIS, XLI, XLF, KRE, VFH, IYJ) that are sensitive to global trade and credit conditions. At the same time, it may support a relative shift toward U.S. and non‑China tech and semiconductor plays—benefiting AAPL, TSM, QQQ, XLK, VGT—on the narrative of supply-chain diversification and reshoring, potentially also aiding U.S. industrials with North America–focused footprints. Financials and regional banks (XLF, KRE, VFH) could see mixed effects: reduced China exposure is de-risking, but weaker global growth sentiment and trade flows could weigh on earnings expectations and risk appetite in the short term.
Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
Taiwan Semiconductor Manufacturing Company Limited ((TSM)),
Invesco QQQ Trust ((QQQ)),
Vanguard Industrials ETF ((VIS)),
Financial Select Sector SPDR Fund ((XLF)),
Industrial Select Sector SPDR Fund ((XLI)),
Technology Select Sector SPDR Fund ((XLK)),
Alibaba Group ((BABA)),
SPDR S&P Regional Banking ETF ((KRE)),
iShares MSCI China ETF ((MCHI)),
Vanguard Financials ETF ((VFH)),
Vanguard Information Technology ETF ((VGT)),
iShares U.S. Industrials ETF ((IYJ)).