Stock markets continued to dismiss the heightening tariff threats between the U.S. and China.
On Wednesday, Treasury Secretary Scott Bessent said that the Trump administration plans to strengthen its influence in strategic sectors. It will do so by taking equity positions. Previously, the government invested in MP Materials (MP). That sent MP stock to as high as $100.25, compared to its 52-week low of $15.56.
The government invested in Lithium Americas (LAC). LAC stock closed at $9.44, not far from its $10.52 52-week high. The 52-week low is $2.31. It invested in Intel (INTC), along with Nvidia (NVDA). Intel stock broke out from a $20 support zone to close at $37.15.
Lately, the U.S. has shown increasing worries over China introducing new restrictions on rare earth metals and magnets. The U.S. cannot produce those materials yet. It relies on China and its allies for rare earths.
Investors who correctly guess which companies the White House would invest in would benefit greatly. However, since Bessent criticized defense contractors, it is unlikely that to will invest in them. That would include AeroVironment (AVAV), Northrop Grumman (NOC), RTX (RTX), or Lockheed Martin (LMT). Shares in those firms dipped recently, although LMT stock bottomed at around $410. The stock closed at $499.41 on Wednesday.
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