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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“RT @realDonaldTrump Mortgage Rates just hit a Three Year Low despite Jerome “Too Late” Powell, and his never ending quest to keep Interest Rates high (against “TRUMP!”). It just shows that he has been wrong all along, because the Market is overtaking his obstinance. The Fed has been hurt and discredited during Too Late’s reign!”
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 highlighting three-year-low mortgage rates and criticizing the Fed could boost sentiment for rate-sensitive housing and mortgage-related stocks such as D.R. Horton, Lennar, PulteGroup, Toll Brothers, Rocket Companies, and mortgage REITs like Annaly, as investors may anticipate stronger housing demand and refinancing activity. Lower-rate optimism can also support large banks and financials (Bank of America, Wells Fargo, XLF, KRE, VFH) if investors focus on higher loan volumes and credit quality rather than margin pressure from lower rates. Real estate and consumer-discretionary ETFs (VNQ, IYR, XLRE, VCR, XLY) might see increased interest on expectations of cheaper financing and stronger consumer spending tied to a more accommodative rate environment implied by the post, although volatility could rise due to politicization of monetary policy.
Here are some of the stocks that might be affected:
Annaly Capital Management ((NLY)),
Bank of America ((BAC)),
D.R. Horton Inc ((DHI)),
Lennar Corporation ((LEN)),
Pultegroup ((PHM)),
Toll Brothers Inc. ((TOL)),
Wells Fargo & Company ((WFC)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Consumer Discretionary ETF ((VCR)),
Vanguard Financials ETF ((VFH)),
Vanguard Real Estate ETF ((VNQ)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)),
Rocket Companies Inc ((RKT)).