Trump’s South Korea Deal: A Boon for U.S. Energy and Defense Stocks?

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“South Korea has agreed to pay the USA 350 Billion Dollars for a lowering of the Tariff’s charged against them by the United States. Additionally, they have agreed to buy our Oil and Gas in vast quantities, and investments into our Country by wealthy South Korean Companies and Businessmen will exceed 600 Billion Dollars. Our Military Alliance is stronger than ever before and, based on that, I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now. A great trip, with a great Prime Minister!”

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 announcement of South Korea’s agreement to pay the U.S. $350 billion for tariff reductions and their commitment to purchase American oil and gas could positively impact Chevron and Exxon Mobil Corp., as increased demand for energy exports may boost their revenues. The approval for South Korea to build a nuclear-powered submarine could benefit Lockheed Martin and the iShares U.S. Aerospace & Defense ETF, as it may lead to increased defense contracts and investments in military technology. Additionally, the promise of significant investments by South Korean companies into the U.S. economy could influence the Energy Select Sector SPDR Fund and the iShares MSCI South Korea ETF by enhancing cross-border economic ties and potentially boosting stock prices in both regions.

Here are some of the stocks that might be affected:
Chevron ((CVX)),
Exxon Mobil Corp. ((XOM)),
Lockheed Martin ((LMT)),
Energy Select Sector SPDR Fund ((XLE)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares MSCI South Korea ETF ((EWY)).