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Forget margin or options. Here's how the pros trade QQQPresident Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“The Dow Jones Industrial Average just hit 50,000 for the first time in History. CONGRATULATIONS AMERICA!”
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 celebratory post about the Dow Jones hitting 50,000 could reinforce bullish sentiment and risk-on behavior, supporting large-cap bellwethers like Apple, Microsoft, and JPMorgan as well as sector and style ETFs such as QQQ and the Technology Select Sector SPDR Fund. Positive sentiment toward industrial and financial strength in the U.S. economy could particularly benefit the Vanguard Industrials ETF, Industrial Select Sector SPDR Fund, Financial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, Vanguard Financials ETF, and iShares U.S. Industrials ETF through increased inflows and speculative buying. However, because the post is more symbolic than informational, any price impact is likely to be short-lived and sentiment-driven rather than a response to fundamentals, so investors should be cautious about chasing moves purely on this headline.
Here are some of the stocks that might be affected:
Apple Inc ((AAPL)),
JPMorgan Chase & Co. ((JPM)),
Microsoft ((MSFT)),
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)).