Trump's Executive Orders: Which Ones Will Impact US Stocks?
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Yesterday, Trump announced his inauguration and issued multiple executive orders. Which of these orders will impact the US stock market? 1. How Do Executive Orders Impact the Broder Market? Putting "America First" and declaring that "a new golden era begins now." Directing all cabinet members to use every power available to combat record inflation and quickly reduce costs and prices. Establishing a brand-new Department of Government Efficiency. The "America First" policy has raised market expectations that US equities may outperform other markets. However, aggressive anti-inflation measures and the establishment of the Department of Government Efficiency introduce significant uncertainty. Over the past year, US stocks have been in a bull market driven by strong economic performance. If inflation declines while triggering a recession, the market, currently at elevated levels, could tumble into a bear market. The Department of Efficiency may also weigh on the market. Should Trump and Musk significantly cut government spending—much of which has contributed to economic growth—it could create headwinds for the broader stock market. 2. How Long Will Eased AI Regulations Drive Gains? An order to revoke about 80 of President Biden’s executive actions President Biden signed an executive order in 2023 requiring authorities to regulate potential AI risks and improve standards and tools to ensure the safety and reliability of AI systems. On Monday, Trump revoked this order. Recently, $NVIDIA(NVDA)$ plummeted to $130 due to the AI chip export ban. Trump's relaxed regulatory environment for AI development is likely to benefit AI-focused stocks. For example, when Trump pledged to ease banking regulations, US banking stocks experienced a rally from November 5 to November 25 last year but later lost momentum and corrected—similar to the trajectory of small-cap stocks. Combined with $Taiwan Semiconductor Manufacturing(TSM)$ positive earnings report last week, the semiconductor sector may see gains recently. However, the sustainability of this rally remains uncertain. 3. Wait for Bitcoin Policies or Sell the Fact? Bitcoin has pulled back from its record highs as Trump failed to deliver specific policy commitments regarding cryptocurrency, disappointing the crypto community. According to media reports citing insiders, Trump plans to issue an executive order making cryptocurrency a policy priority. This includes giving industry leaders a voice in the new administration, establishing a Bitcoin reserve, and allowing the federal government to buy and sell cryptocurrencies. As a result, analysts predict a more favorable trajectory for Bitcoin during Trump's first year in office. Alex Thorn, Head of Research at Galaxy Digital, forecasts Bitcoin to break $150,000 in 2025. 4. Rocket Stocks to Continue Rising Over the Next Four Years? Send American astronauts to Mars and plant the Stars and Stripes. Trump’s executive order to send American astronauts to Mars aligns perfectly with Elon Musk’s vision. The biggest beneficiary is undoubtedly $Destiny Tech100 Inc(DXYZ)$, a fund investing in SpaceX, which rose nearly 5% in overnight trading. Other notable rocket stocks include $Rocket Lab USA, Inc.(RKLB)$ and $Intuitive Machines(LUNR)$ , also rises 5% in the overnight trading. Questions to discuss: Trump’s first day in office is here! Will the stock market celebrate this new president with a rally? What stocks do you think are worth buying on the first trading day of Trump Office? Would it be wiser to sell the fact for crypto and wait for a better entry point? Rewards: Leave your comments and also post to win at least 5 tiger coins~ You are also welcome to post directly in the topic: Trump 2.0 Begins: What To Buy on The First Trading Day? As coins for comments or posts will all be distributed in this topic!
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