Steel Stocks Are Back in Vogue as Trump Victory Buoys Outlook

A surge in American steel stocks just hours after former President Donald Trump secured a second term signals investors are betting his victory is bullish for the industry.

Shares of the four largest US steelmakers each jumped more than 10% on Wednesday amid speculation that Trump’s win will usher in a fresh round of protectionism and recast global trade rules. The billionaire populist promised throughout his campaign for the White House to slap more duties on imports that threaten domestic industrial capacity and jobs.

The S&P steel sub-industry index that includes United States Steel Corp., Nucor Corp., Cleveland-Cliffs Inc., Steel Dynamics Inc. and 11 other companies jumped as much as 14%, the most in more than 15 years. 

“There’s clearly inflationary expectations for steel that’s coming through, whether it’s policy or tariffs,” said Phil Gibbs, a veteran steel-industry analyst at Keybanc Capital Markets Inc. 

It’s been a brutal year for the domestic steel industry, which witnessed benchmark prices tumble by more than 35% as demand weakened for everything from automobiles to toasters. Chief executives from the largest steelmakers have been warning of soft demand for the alloy headed into 2025.

It wasn’t immediately clear what actions Trump may take on steel imports, given the existing 25% tariffs that have remained in effect since he imposed them in 2018. But Gibbs noted there’s strong sentiment among investors that the president-elect will take measures.

“There’s the belief that he’s better for steel companies” than his opponent, Vice President Kamala Harris, Gibbs said. 

Cleveland-Cliffs was the biggest gainer of the group, rising 22% at 3 p.m. in New York. Nucor surged 17%, while Steel Dynamics and US Steel rose 15% and 11%, respectively.

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