Donald Trump returns to the White House. Investors believe this is much better news for some sectors of the US economy than others – and the same goes for different parts of individual US stock portfolios.
Some plays seem obvious. Trump is traditionally seen as a positive for banks and fossil fuel companies, but as a scourge for sectors such as renewable energy. Trading on Wednesday morning shows that the view is largely unchanged.
However, prior to the election, several analysts said this Fortune the story may not be so simple. From tariffs to tax policy, other potential consequences of a second Trump administration are also significant. Below, we’ve rounded up the stocks that may continue to rise or fall ahead of Trump’s second inauguration:
Banks are at the heart of the Trump trade. Jay Hatfield, the CEO of Infrastructure Capital Advisors, is not a fan of stock picking based on the presidential race. Nevertheless, he is willing to say that the financial sector is likely to benefit from a second Trump term due to likely lighter regulation. Shares of Goldman Sachs jumped 12% on Wednesday morning, including Morgan Stanley, JPMorgan ChaseAnd Citi Group not far behind.
That could also apply to private equity firms and other asset managers, which have had to endure a difficult period in terms of dealmaking. Shares of alternative asset giant KKRthat will benefit from a surge in both IPOs and mergers and acquisitions, rose 9% to a record high above $150 on Wednesday.
No industry is likely to celebrate a Trump victory like the world of cryptocurrency, which he and the Republican Party fully embraced over the summer. That resulted in massive financial support from the industry, which chafed at the Biden administration’s more restrictive policies.
Shares of crypto exchange Coin base up almost 25% on Wednesday morning. MicroStrategy, the largest public company holder of Bitcoin, saw its shares rise more than 10% as the world’s largest cryptocurrency broke record highs.
Finally, energy is generally seen as a Trump play, thanks to the former president’s promise to “drill, baby, drill.” Sam Stovall, chief investment strategist at CFRA Research, believes the supply-and-demand story could be a little more complicated. A significant increase in oil production would, he said, reduce oil costs.
“That would hurt the upstream companies that are drillers, [as well as] exploration and production companies,” he said, “but it would be useful for the downstream regions.” The latter includes refineries such as Valero Energy and natural gas transportation giant Kinder Morganwhich saw their shares rise more than 4% and 6% respectively on Wednesday.
