Donald Trump’s election as U.S. President has set off ripples across global markets, with some stocks rallying and others facing downturns. The reactions stem from various factors, such as Trump’s stance on deregulation, tariffs, fossil fuels, and green energy policies. Here’s a look at some of the companies most affected.
Tesla: Soaring Stock with Political Tailwinds
Tesla’s CEO, Elon Musk, may benefit from a close political relationship with Trump. After supporting Trump’s campaign, Musk now stands to gain from a regulatory environment favorable to innovation and low restrictions. This optimism has been mirrored in Tesla’s stock, which surged temporarily by about 15%, boosting the company’s market value by nearly $100 billion.
Bank of America: Gains on the Deregulation Front
Shares of Bank of America jumped almost 10% post-election, reflecting investor optimism about Trump’s pro-business agenda. Analysts predict that Trump’s approach to easing banking regulations could stimulate the industry, enabling more mergers and acquisitions and paving the way for a more relaxed interest rate environment—key drivers for banks like Bank of America.
First Solar: Climate Policy Casts Shadow on Renewables
The leading U.S. solar panel company, First Solar, saw its stock dip by around 10% after Trump’s victory. Trump’s support for traditional fossil fuels and criticism of renewable energy funding has caused concern in the sector. His pledge to cut funding for clean energy initiatives, such as the Inflation Reduction Act (IRA), has prompted investor caution, impacting stocks in solar and other green energy companies.
Coinbase: Crypto Sector Sees Surge
The cryptocurrency market experienced a post-election rally, with Bitcoin hitting record highs fueled by Trump’s crypto-positive messaging. Trump’s proposal for a national Bitcoin reserve has sparked enthusiasm, benefiting trading platforms like Coinbase, which saw a spike in stock prices. Coinbase also backed Trump’s campaign with $45 million, indicating its vested interest in his election.
Raiffeisen Bank International: European Gains from Russian Ties
Vienna-based Raiffeisen Bank International (RBI) saw its stock climb after the election. As one of the few Western banks still active in Russia, RBI derives a significant portion of its revenue from Russian operations. Speculation that Trump’s policies may favor Russia has bolstered investor confidence in RBI’s future profits, lifting its stock.
Trump’s presidency has proven to be a turning point for many sectors, illustrating how political leadership can drive sudden market shifts and influence investor behavior across the globe.