The winners and losers of the Trump Pause price

The 90 -day break from President Donald Trump on radical prices felt around the world and on the financial markets, certain stakeholders behaving better than others.

On Wednesday afternoon, Trump suddenly interrupted the prices, which entered into force after midnight early Wednesday morning. Before his return, the actions crushed for days in the midst of volatility caused by the prices.

The reversal quickly sent actions to the sky. The S&P 500 has achieved its biggest day since 2008 to 9%, while the DOW increased by almost 3,000 points and the NASDAQ jumped 12%.

Some business leaders reacted with relief to the move, but not everyone was unscathed. China has been struck by even larger prices, which, according to Trump, was due to the reprisals that the country adopted in the United States.

Here was a little prettier when the market is closed on Wednesday and which could be worse.

Winners

Airlines and other travel companies

Travel companies saw some of the largest market gains on Wednesday, the United Airlines’ action price increasing by 26% and Delta Air Lines actions increasing by 23%. Cruise companies have also succeeded well, with Norwegian cruise assets up 19% and Carnival Corp up 18%. Expedia Group also increased by 18% during the day.

“It was not only the airlines. All travel brands were really the winners today at Wall Street,” Chairman and CEO of Longwoods International, a market firm on travel tourism, told Bi Amir Eylon.

Eylon said that two main travel problems facing prices were increased costs of suppliers on things like plane rooms, hotels supplies and building materials, as well as a fear that a price increase in the economy can weaken travel expenses.

Semiconductor companies

Intel, NVIDIA and several other semiconductor companies were among the largest winners concerning the increases in the share price. Intel and Nvidia equity prices increased by around 18%.

Even if semiconductors or chips were exempt from prices, Emma Cosgrove de Bi reported earlier this week than other components used in the products in which chips are used could have been affected.

“We don’t know exactly what to do with all of this,” said Bernstein analysts in a note last week. “Most semiconductors enter the United States within other things for which prices are likely to have a much more important influence, so side effects are likely to be much more material.”

Tesla and Elon Musk

Tesla’s shares increased by 22% on Wednesday, probably a stay welcome for a company that has faced a strong reaction and a drop in action for months.

Tesla CEO Elon Musk also emerged as a winner, partly due to the increase in stock prices. According to the Bloomberg Billionaire index, its net value increased to $ 326 billion, compared to $ 290 billion from the fence market one day before, which was the lowest since November.

Musk had also publicly criticized the prices in recent days and continued Peter Navarro, the president’s best commercial advisor, so the break seemed to give the billionaire what he wanted.

Losers

China

Unlike other American trade partners, China has been excluded from the prices break. In addition, Trump said that he would increase the rate of tariff on China due to the country’s reprisals. The new total rate rate for imports from China was 125%.

As Meagan Martin-Schoenberger, principal economist and commercial expert in KPMG, and some other economists have noted, the increase in prices for China actually increases the effective rate rate.

Amazon

Although Amazon’s stock price increased by 12% on Wednesday, high prices on China could issue problems for the online retailer because many products that it sells, directly or through third -party sellers come from the country.

Eugene Kim de Bi previously reported that Morgan Stanley estimated that Amazon was the electronic commerce company that it covers most exposed to Trump prices, citing the products it sells from China.

Not much, for the moment

Overall, if the stock market is an indication, there were not many losers in the break on prices. Only nine companies on the S&P 500 have seen their market value drop Wednesday (sorry, Dollar General).

However, time will say what will happen next, including if the prices will be restored or if the uncertainty and the cervical boost will have lasting impacts which are not yet clear.

Neither the winners nor the losers

Martin-Schoenberger de KPMG said that “winners and losers” may not be the best way to see the situation.

“Even if most countries have obtained a break, higher rates on China, Canada and Mexico have in fact sent the effective rate rate higher than it would have been without change,” she told Business Insider in a statement sent by e-mail, adding that this was likely to “accelerate the use of connector countries to avoid prices”.

“Uncertainty is high, which acts as its own tax on the economy,” she said, adding that industries with complex supply chains, such as cars and technological manufacturing, could be more difficult.