Good morning, traders…
The country just changed. And so did the market.
Just before midnight on Monday, Vice President J.D. Vance walked into the U.S. Senate chambers and cast the tie-breaking vote…
The “One Big Beautiful Bill” passed the Senate.
Now it heads to the House, where Republican leaders say they will fast-track it before the July 4 recess.
If they succeed, we’re looking at the biggest government spending pivot in decades.
This is why the markets have been rallying to new all-time highs. The bill extends tax cuts, pours billions into defense and border contracts, and kneecaps green energy credits.
It’s a full reset of the post-COVID economy.
And if you know where to look, that reset will create some of the best trading opportunities in years.
The headlines are loud. But the tradeable details are easy to miss.
Let’s Break Down What The “One Big Beautiful Bill” Actually Does (And 8 Stocks That Stand To Benefit)…
1. Trump-era tax cuts extended through 2028
The bill locks in personal income tax rates from 2017 and raises the standard deduction by up to $2,000 for most filers. Retirees earning under $60,000 get an extra $6,000 deduction. This change gives higher earners more after-tax income and encourages consumer spending across the board.
2. Medicaid and SNAP face deep cuts
The bill imposes stricter work requirements and new co-pays for beneficiaries. The Congressional Budget Office projects 11 million Americans will lose coverage.
Healthcare providers that rely heavily on Medicaid payments could see serious margin pressure.
3. Defense spending jumps by $150 billion
Funding is earmarked for fighter jets, cybersecurity systems, and border operations. There’s also new money for physical border wall construction and ICE deportation efforts.
Contractors with military and homeland security exposure should see a sharp increase in orders.
4. SALT cap lifted to $40,000 through 2029
High-income households in states like California, New York, and New Jersey will be able to deduct more from their federal taxes.
That could fuel demand for luxury real estate, financial services, and high-end retail.
5. Green energy tax credits scaled back
Credits for electric vehicles, wind, and solar installations are reduced or eliminated.
Clean energy firms could lose a major source of funding, while traditional energy producers may regain market share.
6. AI regulation softened but not blocked
A proposed federal ban on state-level AI laws was removed after pushback. Now, states can regulate AI companies on their own terms.
That creates patchwork risk for AI developers but avoids a nationwide clampdown for now.
7 Stocks That Could Benefit from the Bill
If the House signs off on the bill this week, these eight stocks could see increased buying pressure over the coming months…
JPMorgan Chase & Co. (NYSE: JPM)
JPMorgan can make profits from higher consumer spending and stronger business sentiment under the extended tax cuts.
More income means more deposits, more loans, and more credit activity.
These are all areas where JPM is dominant. The bank also has a strong base of wealthier clients who benefit the most from SALT cap relief.
Wells Fargo & Company (NYSE: WFC)
Wells Fargo has been leaning into wealth management and mortgage lending. The SALT cap increase and overall tax relief could lift both business lines.
The bank’s exposure to high-income clients in states like California and New York makes it a likely winner.
Bank of America Corporation (NYSE: BAC)
Bank of America should see a boost in both lending and credit card activity as tax relief fuels consumer demand.
Their broad retail banking network makes them highly sensitive to income-driven economic shifts. The rollback of green subsidies could also help their energy lending portfolio.
Lockheed Martin Corporation (NYSE: LMT)
Lockheed is a top beneficiary of new defense spending. The bill includes funding for F-35 fighter jets, missile defense, and NATO support.
With a large backlog and strong ties to the Pentagon, Lockheed could ride years of steady contract growth from this single vote.
Northrop Grumman Corporation (NYSE: NOC)
Northrop’s cybersecurity, space, and defense divisions are all positioned to grow under the expanded military budget.
The company’s focus on high-tech systems aligns with new Pentagon priorities in AI-driven defense and missile detection.
Fluor Corporation (NYSE: FLR)
Fluor could be tapped for contracts tied to border wall construction and ICE facility upgrades.
They specialize in large-scale engineering and government infrastructure, and the bill earmarks billions for exactly those types of projects.
EOG Resources, Inc. (NYSE: EOG)
EOG could benefit from reduced competition from green energy as the bill cuts tax credits for renewables.
The company has low production costs and strong U.S. shale reserves, which could become more attractive as policy shifts back toward fossil fuels.
Caterpillar Inc. (NYSE: CAT)
Caterpillar makes the machinery used in construction, mining, and infrastructure. These are exactly the kind needed for new border barriers and defense installations.
If federal money begins flowing into those projects, Caterpillar could see a jump in orders and equipment leasing.
Whatever you do, remember this:
Now is the time to separate your politics from your trading. You’re a trader, not a political commentator.
The market doesn’t care about your politics, so don’t bring your politics into the market.
Trade what’s in front of you regardless of how you feel about this bill.
If this bill clears the House by July 4, every one of these names should be on your radar.
The setups are forming. It’s time to prepare for what’s ahead.
Happy trading,
Ben Sturgill
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