Wall Street giddy as Trump White House expected to OK fresh wave of mergers and acquisitions

Wall Street is eagerly anticipating a surge in deal-making as President-elect Donald Trump’s second term is expected to usher in a period of increased mergers and acquisitions (M&A).

Following Trump’s re-election, which came with promises of deregulation, the Dow Jones Industrial Average has soared to record highs, particularly fueled by gains in banking, energy, and cryptocurrency stocks.

A rollback on antitrust enforcement could also drive up stock prices across sectors. In a client note on Wednesday, Goldman Sachs forecasted a 20% jump in M&A activity next year, noting that M&A activity had dropped 15% this year compared to 2023.

“The Federal Trade Commission and Department of Justice Antitrust Division’s recent stance challenging numerous business mergers could be eased under the new administration,” Goldman Sachs’ chief U.S. equity strategist, David Kostin, wrote.

Warner Bros. Discovery CEO David Zaslav, whose network CNN has often clashed with Trump, expressed optimism, suggesting that a second Trump administration would be beneficial for business consolidation.

“With a new administration coming, it’s early to predict, but there could be accelerated change and consolidation, bringing positive effects that this industry really needs,” Zaslav told analysts on an earnings call Thursday.

Previously, in July, Zaslav shared his hope for regulatory flexibility under a new administration to allow more mergers and strengthen industry players.

In contrast, the Biden administration’s strong antitrust stance—led by FTC Chair Lina Khan, SEC Chair Gary Gensler, and DOJ antitrust head Jonathan Kanter—has caused frustration for some corporate leaders. Under Khan, the FTC has sought to block mergers such as Kroger and Albertsons and pursued Amazon for alleged antitrust violations related to its Prime service.

The Biden administration’s actions have also impacted tech giants like Apple, Meta, and Google with heightened antitrust scrutiny.