President Donald Trump’s recently launched Trump Account could bring about $20 billion worth of money into U.S. stocks, according to Wells Fargo. Equities analyst Ohsung Kwon said more than $19.5 billion should flow from accounts in the second half of this year. According to him, capital inflows will be concentrated in the third quarter. Kwon said the funds will bring price-sensitive inflows into large-cap stocks, including technology stocks. The Treasury Department last week announced a broad menu of exchange-traded funds from which people can choose to invest their Trump account contributions. Analysts at Wells Fargo said inflows from accounts alone would not be a “structural driver” for stock prices. This $20 billion represents about 3% of the estimated annual inflows into 401(k) retirement accounts. But Kwon said the numbers carry more weight given that they are mainly released during the first quarter. The analyst also noted that funds from Trump’s account would be placed in U.S. stocks rather than being spread out across various assets through a 401(k). Kwon estimated that nearly one-third of the total amount came from donor commitments associated with the account. Business moguls including the Dell family, Ray Dalio and Brad Gerstner have announced funding to support the program. The Trump account, also known as the 530A account, officially went live over the holiday weekend. These accounts grow on a tax-deferred basis, similar to individual retirement accounts, and include a $1,000 pilot program contribution from the U.S. Treasury for infants born between 2025 and the end of 2028. Trump rang the opening bell for the stock market on Monday in his first event from the White House. He praised Dell products and sent tech stocks soaring.
