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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“South Korea has agreed to pay the USA 350 Billion Dollars for a lowering of the Tariff’s charged against them by the United States. Additionally, they have agreed to buy our Oil and Gas in vast quantities, and investments into our Country by wealthy South Korean Companies and Businessmen will exceed 600 Billion Dollars. Our Military Alliance is stronger than ever before and, based on that, I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now. A great trip, with a great President of South Korea!”
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 of South Korea’s agreement to pay the U.S. $350 billion and purchase large quantities of oil and gas could positively impact energy stocks such as Chevron, Exxon Mobil Corp., Energy Select Sector SPDR Fund, and Vanguard Energy ETF due to anticipated increased demand. The approval for South Korea to build a nuclear-powered submarine may benefit defense stocks like Lockheed Martin and iShares U.S. Aerospace & Defense ETF, as it suggests potential defense contracts and collaborations. Additionally, the influx of South Korean investments might boost the iShares MSCI South Korea ETF, reflecting strengthened economic ties and potential growth opportunities.
Here are some of the stocks that might be affected:
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Energy Select Sector SPDR Fund ((XLE)),
Vanguard Energy ETF ((VDE)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares MSCI South Korea ETF ((EWY)).