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Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:
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WATERSHED MOMENT: Sources detail how former Amazon (AMZN) CEO Jeff Bezos made peace with President Donald Trump, with many pointing to Amazon losing the $10B JEDI contract during Trump’s first term as a watershed moment, The Financial Times’ Anna Nicolaou, Stephen Morris, Rafe Uddin, and Alex Rogers report. According to six people who have worked closely with him across Amazon, Blue Origin, and The Washington Post, Bezos is operating with a “dose of fear” about Trump, as well as resentment towards what he considers to be the Democrats’ “vilification” of Big Tech during the Biden administration.
ROLE IN TRUMP ADMINISTRATION: Tesla (TSLA) stock has plummeted over 40% this year, erasing about $536B in market value, due to concerns about economic growth, Trump’s trade fights, and CEO Elon Musk’s role in the administration, The Wall Street Journal’s Hannah Erin Lang and Owen Tucker-Smith report. Some investors are selling their Tesla shares due to disapproval of Musk’s government cuts, or moral opposition to his more controversial social-media posts, while others are concerned that Musk is too focused on other things and losing faith that the stock could stay on track, according to the report.
INVESTMENT IN U.S.: Rio Tinto (RIO) wants to increase its investment in the U.S., especially in copper, after President Trump signed an executive order to streamline permitting processes and boost government financing for minerals projects, Rhiannon Hoyle of The Wall Street Journal reports. “It’s clear that under the Trump administration, there is an increasing recognition of the need for domestic sources of copper and other critical materials in the U.S., to support manufacturing and the country’s energy future,” Katie Jackson, head of the company’s copper business, said in an email, according to the Journal.
GLOBAL TRADE TARIFFS: Loop Capital downgraded FedEx (FDX) to Sell from Hold with a price target of $221, down from $283. On April 2nd, the Trump Administration is scheduled to unveil its comprehensive tariff strategy for global trade and FedEx’s brand is synonymous with global trade, the firm tells investors in a research note. Loop adds that as economists ratchet up U.S. recession risk, it sees FedEx as a “really bad recession stock” because thin Express margins amplify the earnings hit whenever there’s pressure on the top line.