Trump’s Wall Street Allies: Who’s Benefiting Big on His Return?

The financial markets and industries could undergo changes due to Trump’s presidential victory in the 2024 election. His pro-business agenda on taxes, deregulation, and continued support for traditional energy industries may affect Wall Street considerably. While some sectors, such as finance, energy, real estate, and defence, may expect positive policy revisions, the precise implications on individual companies and stakeholders would depend on official legislative developments.

Trump’s return is likely to benefit certain industries and individuals, especially those within finance, energy, real estate, and big tech, due to his pro-business stance and previous record on tax cuts. So let’s take a closer look at his most powerful allies on Wall Street and how they would prosper if he retakes the presidency.

 

Trump and Wall Street: A Profitable Relationship

During Donald Trump’s presidency from 2017 to 2021, his administration implemented dynamic economic measures that significantly impacted US financial markets. The sweeping 2017 Tax Cuts and Jobs Act (TCJA) dropped the corporate tax rate from 35% to 21%, aiming to provoke corporate investment and economic growth. This move stimulated corporate investment and economic growth by encouraging stock buybacks and dividend payments, thus broadening the capital market.

The Trump administration also focused on deregulation across various industries alongside tax reforms. The push to roll back regulations, particularly the financial regulatory framework in the energy and real estate sectors, aimed to create a more business-oriented environment. These deregulatory measures aimed to reduce compliance costs and facilitate expansion within these industries.

On February 25, 2025, the House of Representatives passed a $4.5 trillion budget, including proposed tax cuts and spending reductions, which must still be approved. President Trump has proposed reducing the corporate tax rate to 15%, but this has not yet been enacted into law and remains subject to legislative action. These tax cuts are likely to boost corporate profits, which will likely contribute to higher stock prices, especially for companies engaged in sectors that align with the administration’s policy priorities.

Although the Trump administration has expressed intentions to roll back some regulations, such actions must go through formal procedures and have not yet been universally applied as of this date. So which sectors and individuals are most likely to benefit?

 

Key Beneficiaries of Trump’s Potential Return

 

Big Banks and Financial Institutions

The financial sector would be among the biggest winners from Trump’s possible return. His prior administration eased key provisions of the Dodd-Frank Act, providing banks with more flexibility and less regulatory oversight. This resulted in more lending and investment opportunities, which could once again emerge if the same policies are reinstated.

Trump’s deregulatory disposition would almost certainly be a boon for JPMorgan Chase & Co. (JPM). Jamie Dimon, its CEO, has had a see-sawing relationship with Trump but has generally backed his financial deregulation agenda, which would allow big banks to operate with fewer rules.

Goldman Sachs (GS), which had significant representation in Trump’s administration, including former Treasury Secretary Steven Mnuchin, would likely return to a comfortable regulatory environment.

Morgan Stanley (MS), another big Wall Street firm, benefitted from Trump’s tax cuts and eased financial oversight during his first term. A second Trump presidency could offer similar advantages, spurring even greater profitability for large investment houses.

 

The Energy Sector: Big Oil and Gas

Trump’s energy policies have traditionally favoured fossil fuels, with a goal of energy independence through increased drilling projects and lowered environmental protections. If he returns, those measures would probably resume, boosting the profitability of major oil and gas companies.

ExxonMobil (XOM), one of the world’s biggest oil producers, would gain significantly from a more relaxed regulatory environment and Trump’s pro-energy independence position.

Chevron (CVX), another oil giant, would benefit from pro-drilling policies that loosen restrictions on oil extraction and fracking.

Occidental Petroleum (OXY), which focuses heavily on U.S. shale production, could benefit from a Trump administration that promotes enhanced domestic oil and gas production.

Trump’s return could lead to a less restrictive landscape for fossil fuel companies as he would be cutting back on federal limitations and rolling back climate-significant regulations, further enabling these companies to expand their operations and reap greater profits.

 

Real Estate Moguls and Property Developers

Trump’s background in real estate makes it unsurprising that his policies have often favoured property developers and commercial landlords. His administration introduced tax breaks to spur real estate investments and tried to lower capital gains taxes. If he returns, those policies could be reintroduced, causing another real estate boom.

One of the world’s largest real estate investment firms, Blackstone Group (BX), profited from Trump’s first-term tax incentives and would almost certainly see a second boost to its profits under similar policies.

Potential property tax cuts and investment incentives geared toward spurring real estate could benefit Related Companies, controlled by billionaire Stephen Ross, a vocal Trump supporter.

Jared Kushner’s family-owned real estate business, Kushner Companies, has deep personal connections with Trump. Pro-development policies and tax breaks would be a boon for the firm, especially in an administration focused on commercial real estate expansion.

If a Trump administration embraced lighter regulation for real estate and new federal tax codes that favour property investment, that sector could experience new growth under a second Trump presidency.

 

Defence and Aerospace Industry

Trump’s presidency was marked by a huge increase in military spending, which benefitted defence contractors and drove up stocks across the sector. If he returns, the Pentagon’s budget might grow once more, leading to substantial contracts for big defence contractors.

As the largest US defence contractor, Lockheed Martin (LMT) should be well-positioned to benefit from higher government spending on military programmes.

Raytheon Technologies (RTX), a top producer of defence systems and aerospace technology, may gain from the surge in military spending and demand for sophisticated weapons systems.

With a focus on space exploration and national defence, Northrop Grumman (NOC) would likely see a spike in government contracts if military spending increases.

A Trump administration would prioritise national security and defence expansion, fuelling solid financial growth for large military and aerospace companies.

 

Silicon Valley’s Divided Stance

Trump’s relationship with Silicon Valley has been complex, with Big Tech frequently clashing with his administration on matters of content moderation and regulatory policies. But certain parts of the tech industry might welcome his return to office.

Through companies like Tesla and SpaceX, Elon Musk has aligned himself more with conservative political figures. A Trump administration would result in less government oversight and regulatory constraints, allowing Musk’s ventures to operate with fewer limitations.

Peter Thiel, a co-founder of both Palantir and Founders Fund, has been an outspoken supporter of Trump. His firm, Palantir, focuses on data analytics, and its business with the government could grow from a pro-business administration.

On top of that, alternative social media platforms might thrive. As Trump continues to challenge mainstream social networks, including Twitter (now X) and Meta, alternatives such as Truth Social and Rumble (RUM) could see a boost in user and investor interest, making them an even stronger player in the conservative media space.

 

What About Retail Investors?

Although larger corporations and hedge funds might stand to benefit the most from a Trump return, retail investors will want to keep a close eye as well. Trump’s policies have created both opportunities and risks for individual investors in the past. Tax cuts and deregulation under his previous administration spurred a stock market rally, benefiting investors who held dividend-paying stocks, energy and defence stocks, and financial institutions. If Trump brings back similar policies, these sectors will likely grow again:

• Dividend-Paying Stocks: Tax cuts for corporations could increase profits after tax, resulting in higher dividends for investors. Businesses with stable cash flows like blue-chip stocks in the consumer goods and tech sectors may come to be seen in a more favourable light.
• Energy and Defence Stocks: If the government funnels money into military contracts or rolls back regulations on oil and gas exploration, stocks in these sectors may benefit. During Trump’s earlier term, firms like Lockheed Martin, ExxonMobil, and Chevron enjoyed gains thanks to favourable policies.
• Financial Institutions: Trump’s plan to roll back financial regulations like the Dodd-Frank Act could help banks and lending institutions. Without regulatory oversight, banks could be more profitable, which could increase the attractiveness of financial stocks.

The overall market volatility, however, remains a concern. Trump’s leadership in the past has caused the stock market to fluctuate up and down, given his erratic approach to policy, trade, and rules. For retail investors, this presents both risks and opportunities—short-term traders may benefit from volatility, while long-term investors should brace themselves for potentially unstable conditions.

 

Final Thoughts: What Lies Ahead for Wall Street?

A Trump return to the White House would surely transform financial markets. His policies would no doubt benefit big banks, oil barons, defence contractors, and real estate tycoons, as was the case during his first term. A return to corporate-friendly tax cuts and deregulation could spur yet another stock market boom that rewards savvy investors.

But these policies could also have wider economic ramifications. An increase in government spending, along with tax cuts, could raise fears over national debt. Income disparity could also rise if corporate profits increase while wages stagnate. Investors must keep in mind other factors, such as potential trade tensions or geopolitical risks that could shake global markets.

In such an environment, it is paramount to stay informed. Policy announcements will also provide cues for the future course of investment; investors should diversify their portfolios and hedge for volatility. Will Wall Street experience another Trump-fueled bull run, or will economic uncertainties and regulatory pushback counterbalance the gains? Time will tell.

 

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FAQs

• How did Trump’s first presidency impact the stock market?

  Under Trump’s first term, stocks had record gains largely driven by corporate tax cuts, deregulation, and a business-friendly environment.

• Which industries benefited the most from Trump’s policies?

  Among the biggest beneficiaries during Trump’s time in office were financial institutions, energy companies, real estate developers, and defence contractors.

• Will Trump’s return lead to another market rally?

  Although his return may uplift some sectors, it may also herald volatility. Investors must prudently evaluate risk factors.

• How will financial regulations change if Trump returns?

  Trump will likely advocate for deregulation, loosening requirements on banking, energy, and corporate tax structures.

• Which stocks should investors watch if Trump wins?

  Investors should keep an eye on financial stocks such as JPMorgan, energy stocks such as ExxonMobil, and defence contractors such as Lockheed Martin, all of which benefited historically from Trump’s policies.