Since Donald Trump’s election as US President, the stock markets have experienced significant fluctuations. While some companies have seen their stock prices soar, others have suffered sharp declines. The causes behind these shifts are varied, ranging from political uncertainty and the threat of tariffs to changes in environmental policy and deregulation efforts.
Tesla: A Winner with Political Backing
Tesla’s CEO, Elon Musk, is set to benefit from his political ties with Donald Trump. Having supported Trump’s campaign, Musk now anticipates a favorable political environment for his companies, with fewer regulations and potential subsidies. Investors shared this optimism, with Tesla’s stock temporarily soaring by about 15%, making the company an additional $100 billion more valuable.
Bank of America: Riding the Deregulation Wave
Shares of Bank of America surged nearly 10% after Trump’s election. Analysts believe that Trump’s promised deregulation efforts could be beneficial for the banking sector. With potential loosening of cartel regulations and a higher interest rate policy, the bank stands to profit from increased mergers and acquisitions, as well as a more favorable operating environment.
First Solar: A Setback for Renewable Energy
First Solar, the largest solar panel manufacturer in the US, experienced a significant drop in stock value by around 10%. Despite the growing global push for renewable energy, Trump’s climate stance, which favors fossil fuels, has caused concern for companies in the renewable energy sector. His criticism of the Inflation Reduction Act (IRA) and promises to cut funding for clean energy initiatives have led to a decline in stocks for solar companies like First Solar.
Coinbase: Crypto Industry Thrives
The cryptocurrency market saw a boom after Trump’s victory, with Bitcoin reaching new record highs. Trump’s crypto-friendly rhetoric, including his proposal for a national Bitcoin reserve, fueled optimism in the market. This enthusiasm also benefited platforms like Coinbase, one of the largest cryptocurrency exchanges, whose stock saw a sharp increase. Coinbase even contributed $45 million to Trump’s campaign, making its stake in the outcome of the election clear.
Raiffeisen Bank International: A European Beneficiary
Raiffeisen Bank International (RBI) saw a boost in its stock price following Trump’s election. As one of the few Western banks still operating in Russia, RBI is benefiting from the ongoing financial ties with the country, which contribute significantly to its profits. The speculation that Trump’s policies might favor Russia has raised hopes among investors, propelling RBI’s stock upward.
These cases illustrate how Trump’s presidency could have diverse effects on global companies, with some thriving under his administration’s policies while others face challenges due to shifts in political and economic landscapes.