Here are the best Trump trades Wall Street recommends ahead of the election | Wilnesh News
Counting of votes in the US presidential election is underway, with early indications that former President Donald Trump will win. As of about 10 p.m. ET, Trump led Vice President Kamala Harris 201 to 91 in the Electoral College. To be sure, there are still many key races in battleground states that are too early or too close for now, according to NBC News. However, stock futures were higher, with futures tied to the Dow Jones Industrial Average rising more than 500 points. Bitcoin, an asset tied to a Trump victory, surged to a record $75,000 given the candidate’s wooing of the industry. In the run-up to the election, investors and analysts pointed to a number of stocks and industries that could benefit from a Trump victory. Here are some highlights: Steel Stocks JPMorgan expects steel stocks to outperform if Trump is re-elected as president. “The Trump 2.0 scenario is likely to see increased tariffs on Chinese and European imports, with the first 100 days focused on executive action related to energy and deregulation,” JPMorgan analyst Bill Peterson wrote in a note. powers, and the phased introduction of tariffs. He added: “Assuming greater protectionism will benefit U.S. steel pricing, steel… in particular should rebound after a Trump win, as U.S. steel pricing continues to rise due to S232 tariffs and primarily a domestic footprint. Already the most attractive in the world “We also see further tariffs benefiting downstream aluminum companies. Peterson said relevant stocks that could outperform if Trump wins include Nucor, Cleveland-Cliffs, Kaiser Aluminum and MP Materials. . Bank of America sees a Trump presidency as a best-case scenario for bank stocks, noting that the Trump administration is expected to see less regulation and more mergers and acquisitions across the industry under Trump. Financial stocks also dominate UBS’s basket of Trump-win stocks, which is less likely to raise taxes and is better for the financial sector. The Switzerland-based investment firm’s top bank picks for a Trump victory include Goldman Sachs, Citigroup and Citizens Financial Group. Meanwhile, Strategas highlighted Lazard as a stock that could do well in the M&A space. Wolf Research added in a report on Tuesday, “In the event of a Trump victory and a Republican-controlled Congress or a split Congress, we expect the fin industry to be the largest industry winner by far. Individual trading investors have used shares of Trump Media Technologies Inc. as a possible indicator of Trump’s chances of re-election as president. Trump supporters have also used the stock to invest in a Trump victory. Trump’s social media platform’s parent company, Trump Shares of Trump Media have soared 94% this year, however, as Vice President Kamala Harris gains momentum as voters head into the election. Shares of Trump Media rose 15% on Election Day, but were halted due to volatility and ended down 1.2% on Tuesday. Trading volume for the stock reached about 147 million shares on Tuesday, well above the stock’s 30-day average trading volume. 52.1 million shares. Other Trump-related stocks include mobile software and blockchain company Phunware, which created Trump’s campaign app, and Rumble, a conservative-focused video platform, according to Evercore ISI. Tesla is another potential beneficiary due to CEO Musk’s close relationship with Trump. Cryptocurrencies A Trump presidency could boost crypto-related assets as the former president has expressed support for the move. Industry. More favorable regulation may continue to push digital currencies such as Bitcoin to new historical heights. Trump may also speed up the approval of cryptocurrency ETFs, which is seen as a boost for the industry more broadly, Trump said. He will turn the United States into “the cryptocurrency capital of the planet and the Bitcoin superpower of the world.” BTC.CM = 1Y Mountain Bitcoin YTD. “Trump took a staunchly pro-crypto stance during the 2024 campaign with his promise to ‘Make Bitcoin Great Again,'” Deutsche Bank analyst Marion Laboure wrote in a research note on Monday. In the past few days, Bitcoin prices jumped to a seven-month high as speculation about a possible Trump victory grew. Nic Puckrin, CEO and co-founder of Crypto Education, said: “The market will react based on who wins the White House. Trump is widely regarded as a supporter of cryptocurrency, although no matter who wins, Bitcoin will The currency will still be boosted. The U.S. dollar will be crucial for investors as the election results are announced, David Zerzos, chief market strategist at Jefferies, told CNBC’s “Money Movers” on Tuesday morning. In times of stress, we will turn to the dollar, at least temporarily, especially if there is global stress, even US-led stress. “It will be the most liquid and transparent of what we let the market do. Information because this is where people can invest money quickly. Zezos added that investors are particularly betting on the dollar on trade with China as a proxy for a Trump victory. UBS, on the other hand, believes the dollar’s strength will be short-lived. “Although if Trump wins, it will be short-lived,” said Solita. The U.S. dollar is likely to strengthen in the short term, but regardless of the winner, we expect the U.S. dollar to weaken over the medium term and recommend investors consider taking advantage of periods of strength to diversify U.S. dollar exposure into other G10 currencies. Marceli, chief investment officer for the Americas at UBS Wealth Management, wrote in a note on Monday. “Fundamentally, we believe the U.S. dollar is overvalued and its yield advantage relative to other currencies continues,” she added. Shrinking, as well as the U.S.’s huge fiscal and current account deficits, could weigh on the dollar regardless of the winner. Military and Defense Stocks Strategas believes a Trump victory could benefit military and defense stocks such as Axon Enterprise, which provides law enforcement technology. Trump has emphasized his focus on immigration enforcement, making his concerns about undocumented immigrants and the U.S. southern border a key issue of his campaign, and recently reiterated his promise to “launch the largest deportations in our country’s history.” What is certain is that “regardless of the outcome, the geopolitical climate will support defense spending,” JPMorgan analyst Seth Seifman said in a client note on Monday. Trump’s willingness to loosen regulations and lower corporate tax rates could boost small-cap stocks. Investors have increasingly used the group to speculate on the likelihood of a Trump victory. The iShares Russell 2000 ETF (IWM) rebounded in late June following the debate between Trump and President Joe Biden. Wolfe Research said in a Nov. 1 report that year-to-date iShares Russell 2000 ETF (IWM) Trump’s victory would also be “the biggest catalyst for continued outperformance in small caps.” The company said deregulation across industries would boost confidence among small businesses. Wolfe Research added that more mergers and acquisitions will also lift small-cap stocks. Evercore ISI also highlighted oil and gas energy stocks, particularly oil and gas producers, as beneficiaries of a second Trump presidency. The company said more deregulation and Trump’s push for fossil fuel production would benefit oil majors such as Exxon Mobil and Halliburton. Specifically, the company said that as the leading U.S. pressure pump company, Halliburton could benefit from “freeing up” its domestic energy capacity. ExxonMobil’s strategy may be boosted by capital flows into more traditional energy sources. U.S.-only retailers, companies that source the lion’s share of their goods from outside the United States, could be harmed by Trump’s proposed trade tariffs. Throughout the campaign, Trump made clear that if he were re-elected, he planned to implement widespread tariffs as a key economic policy tool. These include a 20% tariff on all imported goods and a 60% tariff on products made in China. ULTA Mountain Ulta Beauty stock has gone public so far this year. On the other hand, U.S.-only retailers like Ulta Beauty could get a boost from these policies, according to Evercore ISI. “Trump will have a positive impact on U.S. retailers (which are subject to higher tax rates compared to international retailers),” the company said. “ULTA does not source from China and is in the most resilient discretionary category. ” — CNBC’s Michael Bloom, Sean Conlon, Alex Harring, Fred Imbert and Pia Singh contributed to this report.
