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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“RT @realDonaldTrump I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice. Along with other factors, it was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election. I only hope that long into the future I will be remembered by those who use and love TikTok. Thank you to Vice President JD Vance, and all of the others within my Administration, who helped bring this Deal to a very dramatic, final, and beautiful conclusion. I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision. 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 claim of helping to save TikTok and keep it under a U.S.-controlled investor group could pressure social media competitors like Meta, Alphabet (YouTube), and Snap, weighing on their shares while modestly benefiting broad tech and communication ETFs such as QQQ, XLK, VOX, and XLC if investors see stronger overall digital ad growth. The affirmation of a cooperative outcome with China and a deal “approved” by President Xi may slightly support sentiment toward China-related exposure like MCHI by reducing perceived geopolitical and regulatory risk around Chinese tech assets. However, the impact is likely to be volatile and sentiment-driven in the short term, as markets reassess competitive dynamics in social media, U.S.–China tech relations, and the regulatory outlook for TikTok, with ETF moves reflecting the net effect on mega-cap tech and communication holdings.
Here are some of the stocks that might be affected:
Meta Platforms, Inc. ((META)),
Alphabet Inc. Class A ((GOOGL)),
Invesco QQQ Trust ((QQQ)),
Technology Select Sector SPDR Fund ((XLK)),
iShares MSCI China ETF ((MCHI)),
Vanguard Information Technology ETF ((VGT)),
Vanguard Communication Services ETF ((VOX)),
Snap Inc ((SNAP)),
Communication Services Select Sector SPDR Fund ((XLC)).