iStock/Thinkstock(NEW YORK) — While the reaction of the markets to Donald Trump’s election win caused some alarm, some industries have rallied around the news.
With stock futures plunging Tuesday night, commentators were drawing comparisons to sell-offs last seen amid the financial crisis of 2008.
But Wednesdya morning, U.S. markets were relatively stabilized, trading in positive territory around midday.
Sectors that stand to benefit under a Trump administration have led the way.
Shares of pharmaceutical, private prison, steel and defense companies were flying high on Trump’s first day as president-elect, around midday.
Steel
In a research note for investors shared with ABC News, which was partly entitled “Rising Borders, Rising Walls,” analysts at investment bank Jefferies said that the U.S. steel industry “should stand out as a unique beneficiary of a Trump presidency.”
Noting that the “key to the Trump campaign has been a focus on protectionist trade policy,” the analysts noted steel shortages in the U.S. and said that declining imports would improve domestic steel prices.
Analysts added that Trump’s pledge to boost infrastructure spending “may significantly boost demand for long steel products.”
Private Prisons
Another sector that is trading in the green Wednesday are private prison firms.
In August, the Justice Department, under the Obama Administration, announced a plan to draw back and eventually cease the use of private prisons to house federal inmates.
In the wake of that decision, shares in Geo Corporation and Corrections Corporation of America took big hits.
However, on the campaign trail, president-elect Trump has promised tough action on illegal immigration and a crackdown on undocumented migrants living inside the United States.
Defense
Defense stocks were also seeing a boost.
Throughout the campaign, Trump has promised to “rebuild our military,” and he said in September that “as soon as I take office, I will ask Congress to fully eliminate the defense sequester and will submit a new budget.”
Investors in defense contractor companies like Lockheed Martin, Boeing, Northrup Grumman, Raytheon and General Dynamics appeared to be bullish on a Trump presidency.
Pharmaceuticals
Finally, pharmaceuticals are “unwinding the expectation of a Clinton win,” Rob Haworth, senior investment strategist at U.S. Bank in Seattle, told ABC News.
Haworth said that Clinton’s pledges to regulate drug prices had been factored into the share prices of pharmaceutical companies by investors expecting a Clinton win.
Trump’s upset victory is starting to reverse those assumptions.
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