Trump-Xi Call Hints at Ag Buys, Aerospace Cooperation, and Energy Demand with Volatility Warning

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“I have just completed an excellent telephone conversation with President Xi, of China. It was a long and thorough call, where many important subjects were discussed, including Trade, Military, the April trip that I will be making to China (which I very much look forward to!), Taiwan, the War between Russia/Ukraine, the current situation with Iran, the purchase of Oil and Gas by China from the United States, the consideration by China of the purchase of additional Agricultural products including lifting the Soybean count to 20 Million Tons for the current season (They have committed to 25 Million Tons for next season!), Airplane engine deliveries, and numerous other subjects, all very positive! The relationship with China, and my personal relationship with President Xi, is an extremely good one, and we both realize how important it is to keep it that way. I believe that there will be many positive results achieved over the next three years of my Presidency having to do with President Xi, and the People’s Republic of China! 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 Soybean purchase commitments and broader agricultural goodwill cited in the call could buoy ADM, BG, DE, and industrial ETFs with heavy ag exposure by lifting expectations for U.S. farm exports. Positive references to aircraft engines and aerospace cooperation provide a tailwind for BA, GE Aerospace, RTX, and related aerospace-defense ETFs, though geopolitical discussion around Taiwan and military topics may temper gains via perceived policy uncertainty. Energy names like LNG-focused LNG (Cheniere), CVX, XOM, and their sector ETFs stand to benefit from implied Chinese demand for U.S. oil and gas, yet tensions over Russia-Ukraine and Iran could inject volatility if supply risk premiums rise.

Here are some of the stocks that might be affected:
Archer-Daniels-Midland Company ((ADM)),
Boeing Company ((BA)),
Bunge Global Sa ((BG)),
Cheniere Energy Inc. ((LNG)),
Chevron ((CVX)),
Deere & Company ((DE)),
Exxon Mobil Corp. ((XOM)),
Ge Aerospace ((GE)),
Rtx Corporation ((RTX)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
iShares MSCI China ETF ((MCHI)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
Invesco Aerospace & Defense ETF ((PPA)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares U.S. Industrials ETF ((IYJ)).