Wall Street’s Growing Focus on Washington
From Politico — Jul 10th, 2026
Wall Street is increasingly watching Washington as closely as corporate earnings, with investors trying to gauge which industries could benefit from Trump administration policies on tariffs, subsidies, procurement, and artificial intelligence. The growing focus on political influence has reshaped how markets assess risk, making government support an increasingly important factor in investment decisions.
Dan McCarthy, Senior Adviser at Veda Partners, noted that government involvement makes sense in sectors facing national security concerns or market failures, such as semiconductors and critical minerals, but argued those conditions do not apply to AI. "If you look at Intel or the critical minerals sector, you have a national security need and a market failure where private investors don't see the financial benefit, so it makes sense for the government to intervene," McCarthy said. "Those dynamics don't exist with AI; these companies are already very successful."
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