Trump’s Endorsement of Julia Letlow: Small Sentiment Boost for Energy, Industrial, and Defense Stocks

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

“Highly Respected America First Congresswoman, Julia Letlow, of the wonderful State of Louisiana, is a Great Star, has been from the very beginning, and only gets better! I am hearing that Julia is considering launching her Campaign for the United States Senate in Louisiana, a place I love and WON BIG, six times, including Primaries, in 2016, 2020, and 2024!

I know Julia well, have seen her tested at the highest and most difficult levels, and she is a TOTAL WINNER! A Proud Mother of two children, Julia is a wonderful person, has ALWAYS delivered for Louisiana, and would continue doing so in the United States Senate. As your next Senator, Julia will work tirelessly to Grow our Economy, Cut Taxes and Regulations, Support our Amazing Farmers and Fishermen, Champion Louisiana Oil & Gas, Unleash American Energy DOMINANCE, Promote MADE IN THE U.S.A., Keep our Border SECURE, Stop Migrant Crime, Ensure LAW AND ORDER, Strengthen our Military/Veterans, and Protect our always under siege Second Amendment.

Should she decide to enter this Race, Julia Letlow has my Complete and Total Endorsement. RUN, JULIA, RUN!!! 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 strong endorsement of Julia Letlow with promises to “Grow our Economy,” “Cut Taxes and Regulations,” and “Champion Louisiana Oil & Gas” could modestly lift sentiment in energy names like Exxon Mobil, VanEck Oil Services ETF, Energy Select Sector SPDR, and Vanguard Energy ETF, given Louisiana’s central role in U.S. hydrocarbons and his emphasis on “American Energy DOMINANCE.” His focus on supporting “Farmers and Fishermen” and promoting “MADE IN THE U.S.A.” could marginally benefit industrial and agricultural machinery and broad industrial ETFs—such as Deere & Company, Vanguard Industrials ETF, Industrial Select Sector SPDR, and iShares U.S. Industrials ETF—by reinforcing a pro-manufacturing, pro-agriculture policy narrative. The explicit backing for “Strengthen our Military/Veterans” and “LAW AND ORDER” may create a slightly positive bias toward defense-related stocks and ETFs like Lockheed Martin, Invesco Aerospace & Defense ETF, SPDR S&P Aerospace & Defense ETF, and iShares U.S. Aerospace & Defense ETF, though any price moves are likely to be short-lived unless followed by concrete electoral or policy developments.

Here are some of the stocks that might be affected:
Deere & Company ((DE)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
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)).