The Trump administration has shifted from being a regulator to taking direct equity stakes in key industries like semiconductors, rare earths, and defense manufacturing. This move, known as “The American Sovereign Wealth Fund,” aims to enhance national security goals and secure supply chains, reducing reliance on China.

The U.S. government now owns 10% of Intel, making it the largest shareholder, after converting funding into common equity. This strategic move focuses on long-term goals, not short-term trades, tying INTC directly to U.S. industrial policy. The Department of Defense also holds an equity stake in MP Materials for national security purposes.

Lithium Americas is part of the government’s strategy to secure domestic lithium production, treating lithium as a national security asset. Lockheed Martin faces potential government influence through a ban on dividends and stock buybacks, marking a shift towards treating defense contractors as extensions of U.S. industrial capacity.

The U.S. government recently announced a 10% equity stake in USA Rare Earth to build a fully domestic supply chain, ensuring control over raw materials for defense systems and advanced manufacturing. This aggressive strategy, dubbed the “U.S. Sovereign Wealth Fund,” represents a structural shift in government-market interactions, emphasizing ownership over subsidies.

Traders are closely monitoring these shifts, as government ownership impacts market dynamics. By tracking key stocks like INTC, MP, LAC, LMT, and USAR, traders can stay informed about breaking news related to government actions. The government’s increasing role as a shareholder is reshaping market behavior, influencing where capital flows.

Read more at Yahoo Finance: The White House is Now a Hedge Fund. 5 Government-Backed Stocks Wall Street is Watching.