I’m an Investing Expert: Here’s How Trump Could Impact Your Stocks in 2026
Written by
Dawn Allcot
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The Dow Jones Industrial Average and the S&P 500 hit an all-time on Tuesday, Jan. 6, on the heels of the U.S. capture of Venezuela’s Nicolás Maduro. By Thursday, Jan. 8, the Dow saw small gains after what Yahoo Finance called a “rocky session,” while the Nasdaq dropped slightly and the S&P 500 remained steady after a slight pullback.
“The Maduro capture is not a one-off event and is likely to have a domino effect far beyond,” said Arie Brish, business professor at St. Edwards University in Austin, Texas, and bestselling author of “Lay an Egg and Make Chicken Soup.”
Are the record highs a sign of what’s to come for the stock market in 2026? President Donald Trump’s actions are likely to move the market in ways retail investors may not have expected.
Also see what ChatGPT thinks the top-performing stocks of 2026 will be.
Fuel Prices Could Drop, Driving Up Stocks in Several Sectors
Trump posted on Truth Social that Venezuelan authorities will release 30 million to 50 million barrels of oil to the U.S., which will be sold at market price. “Although Venezuela has one of the largest oil reserves in the world, they didn’t manage it very well,” Brish said.
The price of fuel affects countless industries, from trucking to food production to artificial intelligence (AI). “One of the bottlenecks in artificial intelligence is the energy needed for the data centers,” Brish explained.
Trump’s actions, which may drive lower fuel costs, could boost stocks in a variety of industries. But Brish said the effects will be seen over the long term. “Energy is a major component to many industries, and lower oil costs will be good for investors,” he said. “But this is a long process and will not happen overnight.”
Defense, Development Stocks Poised To Do Well
Brish said he also has his eye on defense and development stocks. “Trump’s continuous investments in defense projects will benefit defense contractors,” Brish said.
Likewise, he said that companies participating in the reconstruction of the Ukraine and Gaza are likely to perform well.
Interest Rate Cuts Could Push the Market Higher
We could also see more interest rate cuts going into mid-2026, when Trump elects a new head of the U.S. Federal Reserve to replace Jerome Powell. “There is no doubt Trump will elect someone that will agree with his desires for further rate cuts,” Brish said.
Rate cuts tend to spark investment and corporate spending, which can raise stock prices.
A Cautious Stance
In spite of all this, Brish said he’s taking a cautious stance for 2026, citing global uncertainty.
“There are too many balls in the air,” he said, “so I’m trying to be a little more conservative with my investments. The Dow is pretty high already, so most likely, we’ll have a correction some time in the near future.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
