Trump’s China Trip Hype: What His Business Praise Means for U.S. Tech, Industrials and China ETFs

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

“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 could temporarily boost sentiment for Apple Inc., Boeing, Micron, Nvidia, Qualcomm and the broader Technology Select Sector SPDR Fund and Industrial Select Sector SPDR Fund by implying closer access to Chinese markets and political backing for U.S. business expansion. However, investors may also price in headline risk and the uncertainty of any concrete policy outcomes, which could limit sustained gains for these stocks and for the iShares MSCI China ETF if talks fail to translate into real market-opening measures.

Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
Boeing Company ((BA)),
Micron Technology ((MU)),
Nvidia Corporation ((NVDA)),
Qualcomm ((QCOM)),
Industrial Select Sector SPDR Fund ((XLI)),
Technology Select Sector SPDR Fund ((XLK)),
iShares MSCI China ETF ((MCHI)).