Trump announces energy deal with India after Modi talks

Published On Feb 13, 2025, 6:23 PM

US President Trump and Indian Prime Minister Modi announced a deal for India to import more oil and gas from the US, aimed at reducing the trade deficit. They discussed increasing military equipment sales to India, including F-35 jets. Trump remains focused on implementing reciprocal tariffs on trading partners, which may lead to higher consumer prices but is touted to boost American manufacturing and job growth. Modi expressed a commitment to energy security for India, with a focus on oil, gas, and nuclear energy investments.

Stock Forecasts

XLE

Positive

The announcement of increased US oil and gas exports to India creates potential for growth in energy sector stocks. Companies involved in these sectors may see an uptick in demand and revenues.

LMT

Positive

Increased military hardware sales, especially of F-35 jets, could benefit companies in the aerospace and defense sector, likely leading to a rise in stock prices for major defense contractors.

SPY

Negative

The imposition of tariffs, particularly if they lead to trade disputes, could negatively impact many sectors reliant on imported goods, such as consumer goods and manufacturing, potentially leading to a short-term downturn in those related stocks.

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