Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
NVIDIA Corporation (NVDA) - free report >>
Tesla, Inc. (TSLA) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVIDIA Corporation (NVDA) - free report >>
Tesla, Inc. (TSLA) - free report >>
Trump Trade Resurgence: ETF Areas Set to Gain or Lose
The odds of former President Donald Trump returning to the White House have risen significantly following the weekend’s attempted assassination. Investors now also anticipate the Federal Reserve will begin cutting interest rates in September.
As a result, we have seen violent rotations in the market this week. Investors have bid up areas that might benefit from a second Trump presidency and dumped areas that may lose.
Trump favors higher tariffs, particularly on imports from China. This could potentially hurt semiconductor stocks such as NVIDIA (NVDA - Free Report) and Super Micro Computer (SMCI - Free Report) . His comments on Taiwan have resulted in a broad sell-off in chip stocks today, driving the VanEck Semiconductor ETF (SMH - Free Report) down almost 7%.
Trump prefers more deregulation, which could benefit the health insurance, energy, and financial industries as well as small-cap companies.
Proposed extensions of corporate and personal tax cuts could increase budget deficits and result in higher government borrowing. Consequently, longer-dated bond yields have surged lately.
The Biden administration’s focus on green energy could take a back seat, and some of the subsidies could be eliminated. Solar and clean energy ETFs have plunged over the past weeks due to these concerns.
Trump’s support for oil companies and more drilling is likely to result in lower energy prices, which may not be positive for the energy sector.
Cryptocurrencies and related stocks have risen sharply in hopes of a more friendly administration. Trump is scheduled to speak at a crypto conference later this month. The iShares Bitcoin Trust: (IBIT - Free Report) is up over 10% this week.
It remains to be seen whether Tesla (TSLA - Free Report) CEO Elon Musk’s endorsement of Trump could result in a softening of Trump’s stance toward electric vehicles. Tesla stock has been on a tear lately since the company reported better-than-feared second-quarter deliveries.
If EV purchase-tax credits are eliminated by the new administration, Tesla will sttill be in a much better position compared to its peers in the industry, according to some analysts.
To learn more, please watch the short video above.