President Donald Trump is wielding an unprecedented level of influence over the private sector. For investors, that has so far translated into mostly positive returns, though not without exceptions.

High Profile Deals With Built In Oversight

In June, the White House signed off on Nippon Steel’s acquisition of U.S. Steel, but only after securing veto power over certain company decisions. That level of direct oversight is highly unusual outside of national crises and signals the administration’s willingness to attach strings to approvals.

The government has also taken equity stakes in key sectors. The Department of Defense bought a 15% share of rare earths miner MP Materials, is negotiating a similar deal with Lithium Americas, and took a 10% position in Intel after President Trump pressured its chief executive to step down. A White House official described these moves as part of a strategy to “help an American company” while ensuring taxpayers “reap the upside.”

Market Reaction: Mostly Up Some Down

Out of six companies now under some form of federal influence, four have delivered gains for shareholders, one surpassing 150%. Rare earth miners have been the standout performers, with shares doubling since the government’s involvement became public. Intel stock has jumped 24% since the August deal, far ahead of the S&P 500’s 1.8% rise over the same period.

Not all stocks have rallied. Nvidia and Advanced Micro Devices, which the White House said would remit 15% of their China chip revenues to the U.S., have seen shares slide. Both companies have emphasized on earnings calls that the arrangement is not finalized, and China’s September ban on many of those chip sales adds another layer of uncertainty.

Industrial Policy in Action

The administration’s approach is not just about financial returns. In mid September, the White House used its new powers over Nippon Steel to block a plan to halt steel processing at a U.S. Steel plant in Illinois. After reversing course, U.S. Steel announced it had “found a solution” to continue production. The company also noted that under the original plan the plant “would have been maintained in case the situation changed, and there would have been no layoffs.”

“For Nippon Steel idling that plant was perhaps a sensible business decision, but for us in the United States… that represents a key loss to our domestic capacity,” the White House official said.

What It Means for Investors

This is arguably the biggest peacetime power grab by Washington over private business in decades. For now, investors in certain sectors especially rare earths and strategic semiconductors are reaping the benefits. But the government’s own statements make clear that boosting shareholder returns is not the primary goal.

The approach signals a new phase of industrial policy where regulatory approval, federal equity stakes, and operational directives can go hand in hand. Investors considering exposure to companies with heavy government involvement should weigh the potential upside of political support against the risk of policy driven constraints.