Trump’s Indiana Endorsement Signals Pro-Energy, Pro-Defense Stance but Limited Market Impact

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

“It is my Great Honor to endorse MAGA Warrior and Fountain County GOP Chair, Paula Copenhaver, a terrific Candidate for Indiana’s 23rd State Senate District (which I won by 26 points!). Paula is running against an incompetent and ineffective RINO incumbent named Spencer Deery who, for whatever reason, betrayed his voters by voting against Redistricting in Indiana. Deery and his RINO friends made Indiana, a State I love and have been very good to, the only State in the Country that essentially said they don’t care if Democrats and Radical Liberal Judges keep conspiring to steal seats in the United States Congress from Republicans. We could have easily picked up two seats in Indiana, but Deery, an America Last politician, would rather side with Far Left Democrats who will do anything and everything in their power to reverse the incredible progress we have made for the American people over the last year since I reassumed the Office of President.

While “RINO” Spencer Deery prefers Democrats, Paula Copenhaver has helped REAL Republicans get elected across her Community, As your next State Senator, Paula will work hard to Protect “Hoosier” Values, Advocate for the Working Men and Women of Indiana, Grow the Economy, Cut Taxes and Regulations, Promote American Manufacturing, Advance MADE IN THE U.S.A., Unleash American Energy DOMINANCE, Keep our Border SECURE, Ensure LAW AND ORDER, Support our Brave Military, Veterans, and Law Enforcement, Safeguard our Elections, and Protect our always under siege Second Amendment.

Paula Copenhaver has my Complete and Total Endorsement to be the next State Senator from Indiana’s 23rd Senate District. Unlike incumbent Spencer Deery, a “RINO” who has become a favorite politician of the Far Left, PAULA COPENHAVER IS A WINNER WHO WILL NEVER LET YOU DOWN!”

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 endorsement of Paula Copenhaver reinforces a pro-fossil-fuel, pro-defense, and pro-manufacturing policy narrative (energy dominance, American manufacturing, strong military), which could marginally boost sentiment toward energy names like XOM, VDE, XLE, OIH and industrial/aerospace-defense stocks and ETFs such as CAT, LMT, PPA, XAR, ITA, VIS, XLI, and ITA. However, this is a local state-level race in Indiana, so any direct, fundamental impact on the earnings or cash flows of these companies and sector ETFs is likely to be negligible in the near term. The market effect, if any, would most likely come through short-lived trading flows from politically aligned investors rather than from changes in actual policy or economic conditions.

Here are some of the stocks that might be affected:
Caterpillar ((CAT)),
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)).