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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“To the Law abiding, Tax paying, Hardworking Citizens of the United States of America, I am thrilled to announce that I have officially freed you from funding California’s disastrously overpriced, “HIGH SPEED TRAIN TO NOWHERE.” This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has cost Taxpayers Hundreds of Billions of Dollars, and we have received NOTHING in return except Cost Overruns. The Railroad we were promised still does not exist, and never will. This project was Severely Overpriced, Overregulated, and NEVER DELIVERED. Thanks to Transportation Secretary Sean Duffy, not a SINGLE penny in Federal Dollars will go towards this Newscum SCAM ever again. This was an ill-conceived and unnecessary project, and a total waste of Taxpayer money — But no more!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement to halt federal funding for California’s high-speed rail project could positively impact the stock prices of major freight rail companies like CSX Corporation, Norfolk Southern Corp, and Union Pacific Corporation, as it may reduce competition from passenger rail projects. Additionally, industrial-focused ETFs such as Vanguard Industrials ETF, Industrial Select Sector SPDR Fund, and iShares U.S. Industrials ETF might experience volatility as investors reassess the implications for infrastructure spending and industrial growth. The decision could lead to a reallocation of resources and investments towards more profitable and efficient transportation projects.
Here are some of the stocks that might be affected:
CSX Corporation ((CSX)),
Norfolk Southern Corp ((NSC)),
Union Pacific Corporation ((UNP)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
iShares U.S. Industrials ETF ((IYJ)).