Trump’s Indiana Endorsement Signals Pro-Industry, Energy and Defense Stance With Limited Market Impact

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

“RT @realDonaldTrump It is my Great Honor to endorse State Representative Michelle Davis, a REAL Republican running for Indiana’s 41st State Senate District (which I won by 33 points!), against RINO incumbent Greg Walker! Michelle will be a fantastic replacement for Walker who, for whatever reason, voted against Redistricting in Indiana, which puts the United States Congress in jeopardy. Walker 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 about what happens in the United States Congress. We could have easily picked up two seats in Indiana, so Walker, an America Last politician, put our Majority in the House of Representatives at risk, thereby putting our Country in a very dangerous position in losing some of the magnificent gains that we have made over the last year, since I assumed the Office of President.

State Representative Michelle Davis, on the other hand, strongly voted WITH Republicans to pass Redistricting in the State House, unlike “RINO” Greg Walker, who voted with the Democrats in the State Senate to stop it. As your next State Senator, Michelle will fight tirelessly to Protect “Hoosier” Values, Advocate for the Working Men and Women of Indiana, Grow our Economy, Cut Taxes and Regulations, Promote American Manufacturing, Advance MADE IN THE U.S.A., Unleash American Energy DOMINANCE, Keep our Border SECURE, Support our Military, Veterans, and Law Enforcement, Advance Election Integrity, and Defend our always under siege Second Amendment.

Michelle Davis has my Complete and Total Endorsement to be the next State Senator from Indiana’s 41st Senate District. Unlike incumbent Greg Walker, a “RINO” LOSER who has failed the fantastic people of Indiana so badly, MICHELLE DAVIS IS A WINNER WHO WILL NOT 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 Michelle Davis emphasizes policies such as tax cuts, deregulation, domestic manufacturing, energy dominance, border security, and support for the military, which could be perceived as marginally positive for cyclical sectors tied to industrials, energy, defense, and financials. As a result, stocks and ETFs with exposure to heavy industry and manufacturing (Caterpillar, Honeywell, GE Aerospace, Lockheed Martin, RTX, iShares U.S. Industrials ETF, Vanguard Industrials ETF, Industrial Select Sector SPDR Fund), energy and oil services (Chevron, Exxon Mobil, Energy Select Sector SPDR Fund, VanEck Oil Services ETF, Vanguard Energy ETF), and aerospace & defense (Invesco Aerospace & Defense ETF, SPDR S&P Aerospace & Defense ETF, iShares U.S. Aerospace & Defense ETF) could see a small sentiment boost, especially if investors interpret this as broader ongoing support for pro-defense and pro-energy agendas. Financials (JPMorgan, Financial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, Vanguard Financials ETF) might also benefit slightly in sentiment from the pro-growth, low-tax rhetoric, but the impact of a single state-level endorsement post is likely to be minimal and easily overshadowed by broader macroeconomic and policy drivers.

Here are some of the stocks that might be affected:
Caterpillar ((CAT)),
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Ge Aerospace ((GE)),
Honeywell International ((HON)),
JPMorgan Chase & Co. ((JPM)),
Lockheed Martin ((LMT)),
Rtx Corporation ((RTX)),
Vanguard Industrials ETF ((VIS)),
Financial Select Sector SPDR Fund ((XLF)),
Industrial Select Sector SPDR Fund ((XLI)),
Energy Select Sector SPDR Fund ((XLE)),
SPDR S&P Regional Banking ETF ((KRE)),
VanEck Oil Services ETF ((OIH)),
Vanguard Energy ETF ((VDE)),
Vanguard Financials ETF ((VFH)),
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)).