What shares are rise in price after the adoption of the Trump bill
Recently, the US Congress approved the so -called “One Big, Beautiful Bill Act” - a large -scale law that has been constant by Trump's tax bones since 2017.
The new law also significantly increases state expenses for defense and security of borders, while expenses on the social sphere and subsidies for green energy will be reduced
Financing is carried out due to the growth of the federal budget deficit and the alleged revenues from the growth of tariffs for imports.
It is clear that such a global change will affect the US economy and cause movement in the stock market. Then a logical question arises: what shares and sectors will especially benefit from new conditions?
What shares are rise in price due to the law of Trump
Defense companies : Increased expenses - more than $ 150 billion per defense industry - an automatic driver for giants of this industry. For example, Lockheed Martin (LMT) - Motley Fool analysts notes that budget growth makes the company's shares attractive, despite the past delays in the F -35 program
Construction companies : Construction and material production industry will benefit from the programs to strengthen borders and defense - the increase in costs stimulates the demand for steel, cement and equipment
The oil and coal sector : the removal of tax barriers and turning the "green" benefits leads to an increase in the attractiveness of hydrocarbons. For example: after the approval of the law, energy and coal companies showed significant growth on the exchange.
The financial sector and small business : extension of tax benefits, reducing the rate and tightening of social programs are beneficial to banks, insurance and financial companies. Also, this step will positively affect small business companies using new tax deductions.
If we talk about specific examples, then the shares of the following companies can grow in price - Lockheed Martin (LMT), Caterpillar, Vulcan Materials, Wells Fargo, Capital One
Based on the above, you can make the following table, which will display the prospects of the US stock market:
| Sector | Growth potential | Examples of promotions/tools |
|---|---|---|
| Defense | High ↑ | Lockheed Martin, Northrop Grumman |
| Energy / Oil / Coal | Middle - Veasy ↑ | Exxonmobil, Chevron, Peabody Energy |
| Construction / materials | Average ↑ | Caterpillar, Vulcan Materials |
| Finance / Banks | Average ↑ | Wells Fargo, Capital One |
| Technology / Green Energy | Risk of decrease ↓ | Tesla, first Solar |
An enhanced fiscal stimulus creates short -term growth, especially in classical industries, but long -term risks (inflation and high rates) can limit the technological sector and growth assets.
Therefore, counting on a long growth of the American stock market, in the long term, is not yet worth it.