First day with Donald Trump at the head of the White House and first cold water jug for his main ally, Elon Musk. Tesla sinks nearly 3% in the stock market and loses $56 billion in capitalization after the arrival of the Republican president. Donald Trump also suffers himself in the stock market and his company, Trump Media, plummets by double digits.
The arrival of Donald Trump to the United States Government had been seen as a new boost for the technology sector, especially after the incorporation of Elon Musk to the command of the US Department of Government Efficiency, which suggested more measures that would continue to promote development. technological.
However, on this first day, Tesla’s setbacks are the largest among those known as The Magnificent Seven and, in fact, the company led by Musk could be burdened by some of the announcements proclaimed this Monday by the 47th president of the United States in his inauguration speech.
In his inauguration speech, Trump ordered the suspension of the economic measures introduced by his predecessor, Joe Biden, to try to reduce inflation. These include any public aid for electrification that promotes the electric vehicle. A measure that can directly collide with the interests of Tesla, one of the main electric vehicle manufacturers in the world.
Apple also sinks above 4% in this session on Tuesday and does so after receiving punishments from two investment banks. For the first time, The Jefferies analysis team advises selling the technology company’s shares and cut its price target to $200, down from $211 previously. Even greater is the reduction by Loop Capital Markets, whose experts go from seeing Apple’s shares at $275 to $230, and they also accompany this snip with a cut in their advice, from buying to holding on the stock market.
Microsoft also fell slightly, although its decline barely reached 0.2%. The real victim is, however, Donald Trump’s own company. Trump Media plummets by double digits, about 11.4%and loses more than $1 billion in market value, in what is its worst session since November. For its part, Meta is trading with transfers of just a few tenths of a percentage.
The rest of the magnificent companies manage to weather Hurricane Trump and even recorded revaluations that reach over 1% in the case of Alphabet and Nvidia. Amazon is around 2% up on this first day with Trump in the White House.
Tesla, the big winner since the elections
Likewise, from November 5 until this past Monday, the day of the Republican’s inauguration, Tesla has been the great beneficiary of Trump’s statements in favor of deregulation with a rise of more than 77% in market value, also in the heat of the new administration’s commitment to autonomous cars and the promotion of artificial intelligence.
During this same period, the defense company Palantir has revalued more than 47% and that of semiconductors Broadcom 43%. However, if we point to the sector that most benefited from the result of last November’s elections, everything points to energy. Among the seven companies that have increased their capitalization the most in the last two and a half months, stand out EQT (+47.8%), dedicated to hydrocarbon exploration and pipeline transportation, Vistra (+46.9%) and Constellation Energy (+41.8%).
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