Now that Donald Trump begins his second term as the president, watching the sector’s performance during his first period is an interesting exercise. Some of the results may be a surprise. In addition, there is reason to believe that one sector that does not work in Trump 1.0 can work much better under Trump 2.0.
Below I will provide a breakdown of the best and worst sectors in the first semester of Trump and see how they are compared with the Biden administration. I will also share where this time everything can differ. I will offer investments that can greatly benefit. The return will use the ETF SPDR State Street sector as a basis and vary from the first day of the president to its last day.
Trump 1.0: strong general performance, technology and discretion of consumer measures
Technological sector sector SPDR Foundation Today
Technological sector SPDR Foundation
As of 31.01.2025 21:10
- 52-week range
- $ 190.74
▼
$ 242.58
- Dividend yield
- 0.56%
- Assets under the control
- 72.81 billion dollars
In the first period, Trump S&P 500 returned the impressive 80%, which was also firmly beaten by a strong yield of 65% during the Biden administration. Productivity differs significantly, however, when considering individual sectors. The administration led a mass conversation in the information technology sector. The technical sector S&P 500 received 174% with Trump and 84% under the leadership of Biden. The second best protruding sector under Trump was discretionary consumer discretion, returning 109%. The sector ruled only 38% profitability in accordance with Bayden. The third best was healthcare, with a profitability of 81% with Trump, compared with 26% under Bayden.
The most amazing difference in productivity between these two presidents was in the energy sector. The sector ensured a total yield -29% under Trump, returning 151% near Biden. This challenged the idea that Trump’s support to focused fuel would increase energy, while the concentration of Biden’s attention on renewable energy sources would harm her. Prices for oil and gas rose, partly from the Russian invasion of Ukraine. This helped the arrival of energy companies to achieve new maximums. To this day, the price of intermediate oil in West Texas (WTI) is almost 40% higher than when Baiden took office. Two other sectors, financial indicators and industry, were also significantly exaggerated under Bayden compared to Trump.
Analysis of sectors is expected to benefit from Trump 2.0
At the moment, many believe that those sectors who did not work in the first semester of Trump will win this time, including energy and financial indicators. The justification is due to the opinion that Trump will have a persistent deregulatory position in relation to these sectors. His mood “training, child, training” and recent executive orders show the desire to increase the production of energy. In addition, less regulation can increase the margin of oil companies by reducing compliance costs.
Nevertheless, the success of oil and gas shares will continue to be mainly rotated around oil and gas prices. This is that the president does not control the little, and the increase in the offer will probably reduce prices. Trump’s tariffs can also be damaged by processing companies that rely on foreign oil to turn into gasoline. In general, the definition of the true influence of the president on this sector is complex.
Financial Select Sector SPDR Fund Today
SPDR FINANCIAL SECTOR SECT Foundation
As of 31.01.2025 21:10
- 52-week range
- $ 38.25
▼
$ 52.04
- Dividend yield
- 1.36%
- Assets under the control
- 53.93 billion dollars
The area where Trump can have a much greater effect is a financial business. Many expect that the activity of mergers and acquisitions (M&A) will increase significantly with Trump. Several managers of the bank have already commented on increased confidence in the business environment. This already encourages banks to rapid growth in income in their divisions of investment banking. When these banks have more mergers and acquisitions to consult, the income from the board increases.
In addition, many believe that Trump can cancel the total capital requirement proposed in the regulation of the final stomach of Basel III. Endspiel Basel III is one of the most significant banking rules since the financial crisis. A noticeable reduction in the volume of regulation would be good for the industry. Finally, many financial names that work in a crypto space will probably benefit from the adoption of digital assets.
Means that could perform well under Trump
Trump administration can significantly benefit the SPDR Financial SecTOR SCTOR NYSEARCH: XLF and InVesco KBW Bank ETF NASDAQ: KBWBNevertheless, I will not want to say that they will surpass all other sectors. The best sectors will almost certainly be the result of circumstances due to the control of the president.
In addition, I believe that Sector Sector SPDR Fund technology NYSEARCA: XLK It remains a strong game. Recent news related to Deepseek sent many shares controlled by artificial intelligence, while others rise. The consequences of Deepseek do not doom the technological sector as a whole, but there will be winners and losers. This makes diversification in the technical sector, which XLK provides valuable in the future.
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