What Gen Z Investors Need To Know About Trump’s Stock Market - 2025
Trump is back in the White House and Wall Street is already vibing differently. Whether you love him, hate him, or meme about him, the one thing no investor can ignore is this: the stock market reacts to power shifts, and 2025 is already showing signs of major economic moves.
If you're investing, planning to start, or just trying to figure out if you should be stashing cash or buying the dip — here's your no-BS, Gen Z/Alpha-flavored breakdown of how Trump 2.0 is affecting the stock market right now, and how you can play it smart.
MoneyMode Tip: Politics don’t care about your portfolio, but your portfolio should absolutely care about politics. Elections = economic shifts = investment plays.
Start with this beginner-friendly post: How to Invest with $100 (Even If You’re Broke-ish)
Trump’s 2025 Economic Focus: What’s Actually Happening
Since retaking office in January 2025, Trump has doubled down on familiar priorities:
- Energy independence (fossil fuels = up)
- Tariffs and trade wars (China tensions = volatility)
- Deregulation (financials + industrials = flexing)
- Military expansion (defense stocks = thriving)
Wall Street’s response? Mixed — but opportunity-filled. Here's the vibe across major sectors:
Winners So Far in 2025
- Defense: Lockheed Martin, Raytheon, and Northrop Grumman are up big on increased military spending
- Oil & Gas: ExxonMobil and Chevron are having their best Q1 since 2018
- Banking: Deregulation = fewer rules = more room to profit (JPMorgan is printing)
MoneyMode Tip: Don’t chase hype. Look at the industries quietly winning under policy shifts, not just meme stocks riding Twitter waves.
Sectors on the Struggle Bus
- Green energy: Solar, wind, and EVs are taking a backseat under Trump
- Big Tech: Facing pressure from both antitrust noise and reduced international cooperation
- Healthcare: Uncertainty around ACA reforms = stock hesitation
Figure out your vibe here: What Type of Investor Are You?
How the Market’s Moving (Literally)
Here's what we’ve seen since January 2025:
- S&P 500: Up 6% YTD — slower but steady gains
- Dow Jones: Up 8% — industrials are eating
- Nasdaq: Flat — tech isn’t crashing, but it’s not the golden child right now
Volatility Index (VIX) is spiking around new policy announcements, showing that even experienced traders are jittery about sudden Trump moves.
Investor Mindset in 2025: What Should You Do?
1. Don’t Time the Market
You’re not Warren Buffett. Focus on consistency and long-term strategy, not vibes and viral news clips.
2. Diversify by Sector
Think beyond tech. Explore energy, defense, and dividend-paying financials. You don’t need to agree politically to make a smart play.
3. Stay Liquid and Flexible
With the 2026 midterms around the corner, expect more swings. Keep some cash on hand to buy dips without panic selling your winners.
4. Learn to Read Policy Like a Playbook
Don’t just follow headlines. Learn what economic policies actually mean for industries. A tariff on China? That’s a buy signal for domestic manufacturers and a risk flag for global suppliers.
Budget before you buy stocks: How to Budget on $1,000 a Month
MoneyMode Take: What Makes 2025 Different
In 2017–2020, Trump’s first term meant tax cuts, market growth, and strong business sentiment. But 2025 is a different world. We’ve got AI regulation drama, Gen Z investors taking over FinTok, and more global instability than ever. The same playbook doesn’t always work twice.
MoneyMode Tip: Watch the policies, not the personality. Political drama is loud — but economic impact is long-term and quiet. Stay focused on your goals, not the news cycle.
Start a Roth IRA before the market shifts: What Is a Roth IRA (2025 Guide)
Final Thoughts
Whether you stan Trump, scroll past him, or meme him into oblivion — his presidency is influencing how money moves. That means stocks, ETFs, crypto, housing, and even your first job offer are part of the bigger economic story. 2025 is a year to learn, diversify, and play the long game.
Don’t get distracted by noise. Get rich slow and smart.
TL;DR:
- Trump’s 2025 policies are boosting defense, oil, and banking stocks
- Green energy and tech are lagging under deregulation
- S&P and Dow are up, Nasdaq is flat, VIX is volatile
- Don’t try to time the market — diversify instead
- Use policy shifts as cues, not headlines
- Keep investing consistently and watch your sector exposure
