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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Before I became President, “OPEC” kept Oil prices high. It wasn’t right for them to do that but, in a different form, is being done again — This time by the Big Homebuilders of our Nation. They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD. I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s call for Fannie Mae and Freddie Mac to encourage homebuilding could lead to increased investor interest in homebuilder stocks like D.R. Horton Inc, Lennar Corporation, and PulteGroup, potentially boosting their stock prices. However, the emphasis on increasing housing supply might raise concerns about oversupply, which could negatively impact real estate ETFs such as Vanguard Real Estate ETF, iShares U.S. Real Estate ETF, and Real Estate Select Sector SPDR Fund. The overall market reaction will depend on investor confidence in the ability of these measures to effectively stimulate the housing market without leading to negative side effects.
Here are some of the stocks that might be affected:
D.R. Horton Inc ((DHI)),
Lennar Corporation ((LEN)),
Pultegroup ((PHM)),
Vanguard Real Estate ETF ((VNQ)),
iShares U.S. Real Estate ETF ((IYR)),
Real Estate Select Sector SPDR Fund ((XLRE)).