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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“The biggest bridge in Iran comes tumbling down, never to be used again — Much more to follow! IT IS TIME FOR IRAN TO MAKE A DEAL BEFORE IT IS TOO LATE, AND THERE IS NOTHING LEFT OF WHAT STILL COULD BECOME A GREAT COUNTRY! 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 post suggests escalating tensions with Iran, which could lift global oil risk premiums and support energy names like Chevron, Exxon Mobil Corp., the Energy Select Sector SPDR Fund and the Vanguard Energy ETF as traders price in potential supply disruptions. At the same time, heightened geopolitical uncertainty can increase volatility and broader market risk-off moves.
Defense contractors such as Lockheed Martin, Northrop Grumman Corp. and RTX Corporation, along with sector ETFs like the SPDR S&P Aerospace & Defense ETF and the iShares U.S. Aerospace & Defense ETF, may benefit from expectations of higher defense spending and demand for advanced weapons systems. However, if rhetoric leads to actual conflict or sanctions shocks, the initial rally could reverse amid concerns about global growth and policy instability.
Here are some of the stocks that might be affected:
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Northrop Grumman Corp. ((NOC)),
Rtx Corporation ((RTX)),
Energy Select Sector SPDR Fund ((XLE)),
Vanguard Energy ETF ((VDE)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)).