DOGE of Elon Musk may crash the US stock market
Elon Musk's latest venture, piloted in conjunction with Vivek Ramaswamy, has shaken the financial world to its core. This initiative, dubbed the Department of Government Efficiency (DOGE), launched under elected president Donald Trump, aims to cut federal spending by redirecting $500 billion to what they call unauthorized or misallocated expenditures.
But while Elon touts spending cuts and deregulation as his ultimate goals, the potential consequences of DOGE have Wall Street sweating.
Federal trac, pharmaceutical giants, and even defense behemoths like Boeing and Lockheed Martin are bracing for a storm. Analysts at TD Cowen are already sounding the alarm. Roman Schweitzer in a Friday client address called DOGE a "major risk factor" for companies linked to federal trac. "Cuts are possible, and there will be uncertainty for several months," he warned. For a market that is already jittery due to sky-high valuations, DOGE could be the disruptive ball that no one asked for.$SUI $PEPE
