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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Trump in Davos: ‘When America Booms, the Entire World Booms’:”
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 optimistic message that “when America booms, the entire world booms” could bolster risk-on sentiment, supporting broad equity indexes and growth-focused vehicles like QQQ, XLK, VGT, and AAPL as investors price in stronger U.S. demand and continued tech leadership. Pro-growth rhetoric tied to infrastructure, manufacturing, and global trade would especially favor industrials such as CAT and the industrial ETFs (VIS, IYJ, XLI), while a steeper-yield-curve and stronger credit demand narrative could lift financials and banks via JPM, XLF, KRE, and VFH. However, markets may also price in higher-rate or deficit risks from aggressive growth policies, adding volatility and making these gains sensitive to subsequent policy details and economic data.
Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
Caterpillar ((CAT)),
JPMorgan Chase & Co. ((JPM)),
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)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Financials ETF ((VFH)),
Vanguard Information Technology ETF ((VGT)),
iShares U.S. Industrials ETF ((IYJ)).