- Summary:
- The Trump win will reset US economic policies, and it means good news for Caterpillar, Goldman Sachs and Tesla Stock prices.
Table of Contents
With Donald Trump confirmed as the next US president, the electoral sentiment around US equities markets is likely to stay in play for a while. A Donald Trump presidency is expected to usher more drastic shifts in US economic policies, and that will have significant impact on stock markets. The three stocks covered in this article, Tesla, Goldman Sachs and Caterpillar stock prices, could particularly been impacted significantly.
Tesla
Tesla stock price was up by 12 percent in the pre-market session on Tuesday, as investors associated CEO Elon Musk’s endorsement of Donald Trump with better growth prospects for the company, following the latter’s election victory. Tesla stock price hit a 15-month high price of $280 at the time of writing, underlining an upbeat sentiment.
Tesla (NASDAQ: TSLA) is focusing on autonomous driving, which is central to its growth, and a Trump presidency is seen as likely to offer a smother path to regulatory approvals. Trump also emphasised that he would raise tariffs on certain goods manufactured outside the United States, which could help Tesla fight off compatition from Chinese EVs. However, as the US already raised tarrifs on EVs made in China to 100 percent in May, there could be limited room for further raises.
Tesla stock price prediction
Tesla stock price pivots at 278.20, and the upside will prevail with action above that level. The first resistance is likely to come at 288.57. However, a stronger momentum could breach that barrier to test 297.73.
Alternatively, a move below 275.50 will favour the sellers to be in control. That could establish the first support at 272.17. However, extended bearishness could break below that mark to render the upside narrative invalid and test 264.43.
Caterpillar Inc
Caterpillar Inc stock popped up in the pre-market session on Tuesday hitting all-time-highs of $410.45, as investors fancied the company’s growth prospect under a Donald Trump Presidency. Trump’s protectionist economic policies are seen as favourable for US equipment manufacturers, who continue to face rising presure from cheaper, and and often heavily subsidised imports.
For Caterpillar Inc (NYSE: CAT), tariffs on rivals like Komatsu, Hitachi and John Deere could be welcome news. In September 2024, Trump threatened to impose a 200 percent tariff on John Deere equipment if the American company proceeded with the planned shift of manufacturing to Mexico. However, tariff hikes will certaintly attract retaliatory measures from affected nations.
In 2018 for example , China raised tariffs on $60 billion worth of imports from the United States. As a result, American agricultural produce like wheat, soybean and corn lost out a substantial portion of their market in China to cheaper substitutes from Brazil and Argentina. Agriculture is a key market for Caterpillar, meaning that such measures could affect demand for some of its products.
Caterpillar stock price prediction
Caterpillar stock price is likely to pivot at 405.05. With the buyers in control, the first hurdle could come at 408.90. However, a stronger upward momentum could test 412.05. On the downside, the first support is likely to be at 402.40. However, extended control by the sellers could break below that mark to invalidate the upside narrative and potentially test 400.00.
Goldman Sachs
Goldman Sachs stock price also rallied on Wednesday as Trump’s win potentially sets it up for increased margins. Trump promised to slash corporate taxes from 21% to 15% during the campaign, which augurs well not only for the investment bank, but also for a host of its corporate clients.
Lower taxes could mean more business for Goldman Sachs (NYSE: GS). Also, Trump’s administration is expected to usher in a return of looser regulation for the financial sector. Goldman Sachs stock price was up by 7 percent in the premarket session at the time of writing, and traded at $565.
Goldman Sachs stock price prediction
Goldman Sachs stock will likely pivot at 563.23. With the buyers in control, the price could move to the first resistance at 570.10. Beyond that point, the second resistance could come at 574.35.
Conversely, moving below 563.23 will favour the sellers to be in control. The downward momentum is likely to find the first support at 558.74. Extended bearisness could break below that level and invalidate the upside narrative. Also, the second support could come at 551.00.
