The United States is gearing up for Donald Trump to take oath as its 45th president. U.S. Steel (X) has been on a tear since Donald Trump was elected. Other steelmakers (XME) like AK Steel (AKS), Nucor (NUE), and ArcelorMittal (MT) have also joined the party as metals and mining stocks have staged a comeback on expectations of a revival in US demand. Trump’s election was one factor that helped fuel a rally in US steel prices.
Trump mentioned steel in several speeches prior to the presidential election. Trump’s stance on protecting US steelmakers from the onslaught of foreign-made steel has caused several analysts to upgrade steel stocks after election results.
Meanwhile, U.S. Steel and other steelmakers, who have been flying high since Trump’s election, faced selling pressure last week. Markets were eagerly awaiting Trump’s news conference last week. However, investors were visibly disappointed after the news conference, which was evident in steelmakers’ price action.
Though there was the customary reference to infrastructure and “making America great again” from Trump’s attorney, the news conference fell short on substance. Now with less than a week before Trump takes office, markets had expected a bit more clarity on Trump’s economic policies.
In this series, we’ll analyze what Trump’s presidency might bring for US steel companies. We’ll also look at the challenges Trump could face in fulfilling his pre-election promises.