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New trading tool for NVDA bearsPresident Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“RT @realDonaldTrump CNBC incorrectly reported that the Great Jensen Huang, of Nvidia, was not invited to the incredible gathering of the World’s Greatest Businessmen/women proudly going to China. In actuality, Jensen is currently on Air Force One and, unless I ask him to leave, which is highly unlikely, CNBC’s reporting is incorrect or, as they say in politics, FAKE NEWS! It is an Honor to have Jensen, Elon, Tim Apple, Larry Fink, Stephen Schwarzmann, Kelly Ortberg (Boeing), Brian Sikes (Cargill), Jane Fraser (Citi), Larry Culp (GE Aerospace), David Solomon (Goldman Sachs), Sanjay Mehrotra (Micron), Cristiano Amon (Qualcomm), and many others journeying to the Great Country of China where I will be asking President Xi, a Leader of extraordinary distinction, to “open up” China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level! In fact, I promise, that when we are together, which will be in a matter of hours, I will make that my very first request. I have never seen or heard of any idea that would be more beneficial to our incredible Countries! 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 post highlighting a high-profile CEO delegation to China could lift sentiment for Apple Inc., Boeing Company, Micron Technology, Nvidia Corporation, and Qualcomm as investors anticipate improved access to the Chinese market and potentially stronger future revenue growth. Sector ETFs such as the Technology Select Sector SPDR Fund, Industrial Select Sector SPDR Fund, and the Financial Select Sector SPDR Fund may see broader gains if markets interpret the trip as a thaw in U.S.-China business relations.
The iShares MSCI China ETF could benefit from expectations of increased foreign investment and technology collaboration should Trump’s push to “open up” China be perceived as credible. However, political uncertainty, the possibility that talks fail to deliver concrete policy changes, and Trump’s confrontational communication style may also inject volatility into these names and the Consumer Discretionary Select Sector SPDR Fund, tempering any initial rally.
Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
Boeing Company ((BA)),
Micron Technology ((MU)),
Nvidia Corporation ((NVDA)),
Qualcomm ((QCOM)),
Financial Select Sector SPDR Fund ((XLF)),
Industrial Select Sector SPDR Fund ((XLI)),
Technology Select Sector SPDR Fund ((XLK)),
iShares MSCI China ETF ((MCHI)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)).