As Donald Trump takes the oath of office today, investors are closely monitoring the market, with expectations running high for policy changes that could reshape the economic landscape.
The agenda, centered on tax cuts, trade reforms, and deregulation, has already sparked optimism in certain sectors. Yet, concerns linger over his tariff-focused trade policies, which could create ripple effects across both domestic and global markets.
With Trump expected to outline his priorities during the inaugural address, analysts are watching for policy signals that may drive immediate shifts in stock prices.
Picks for you
Among the sectors poised to react, two stocks are drawing significant attention, reflecting the broader implications of the new administration’s economic direction.
MARA Holdings (MARA) stock
Cryptocurrency-related stocks have been on a tear since Donald Trump’s election victory, with Bitcoin (BTC) surging past $105,000 amid growing optimism surrounding his pro-crypto agenda.
Marathon Digital Holdings (NASDAQ: MARA), the largest public Bitcoin miner by market capitalization, has surged in anticipation of a pro-crypto wave under Trump’s administration.
Closing at $19.91 on January 17, 2025, MARA posted a one-day gain of 8% and a year-to-date gain of 15%.
Currently holding 44,893 BTC, MARA stands as one of the largest corporate holders of Bitcoin, second only to MicroStrategy (NASDAQ: MSTR), Trump’s anticipated policies, such as establishing a Bitcoin reserve and appointing a ‘crypto czar,’ have created a favorable environment for cryptocurrencies.
As speculation grows over an executive order making cryptocurrency a national priority, MARA remains well-positioned to benefit from a more favorable environment for digital assets under the new administration.
Tesla (NASDAQ: TSLA) stock
Tesla (NASDAQ: TSLA) could see gains under the incoming Trump administration, even amid concerns about potential cuts to electric vehicle (EV) subsidies.
While President Trump has criticized federal EV spending, labeling it part of the ‘Green New scam,’ and suggested eliminating the $7,500 federal tax credit, Tesla’s strong market position allows it to better absorb such impacts compared to its competitors.
Additionally, Tesla CEO Elon Musk’s involvement with the new administration, including his role in the Department of Government Efficiency, suggests the potential for favorable policies toward self-driving technology.
Wall Street remains optimistic about Tesla’s prospects. Morgan Stanley (NYSE: MS) analyst Adam Jonas recently named Tesla the firm’s ‘Top Pick’ for 2025, projecting a bullish target of $800 in a favorable scenario, as reported by Finbold.
This optimistic outlook was attributed to Tesla’s leadership in autonomous vehicle technology and embedded artificial intelligence (AI).
Tesla closed at $426.50 on January 17, 2025, marking a one-day gain of 3% and a year-to-date increase of 5.6%.
However, the full extent of Tesla’s gains will depend on how effectively the company navigates any regulatory shifts and capitalizes on potential policy changes under the Trump administration.
As Donald Trump assumes office, the economic landscape is set to enter a period of significant change, with sectors like cryptocurrency and electric vehicles poised to react strongly to the new administration’s policies.
While the potential for growth is evident, investors must remain cautious, carefully balancing optimism with the inherent risks tied to policy execution and market responses.
Featured image via Shutterstock
