Title 42 Expiration: Market Repercussions And Stock Reactions To Major Immigration Policy Shift

As the expiration of the controversial Title 42 approaches on May 11, the U.S. braces for a significant shift in immigration policy and potential market repercussions.

What Is Title 42? Implemented in March 2020 during the Donald Trump administration, Title 42 has been a cornerstone of both the Trump and President Joe Biden administrations' efforts to control the southern border driven by increased public health concerns during the COVID-19 pandemic.

The policy has been used to expel over 2.7 million people who crossed the southern border, according to a CBS report, sparking criticism from progressive Democrats who argue it denies migrants their legal right to request asylum.

With the imminent termination of Title 42, the Biden administration anticipates a substantial uptick in migrant arrivals, prompting a suite of policies aimed at both deterring migration and expanding legal entry opportunities.

Read also: Eight Trump 'Fake Electors' Granted Immunity In Georgia Investigation

As Title 42's expiration approaches, it begs the question: which stocks could be influenced by this major policy change? With expectations of increased border crossings and a possible surge in immigration, select industries and stocks could experience significant repercussions.

Homebuilding companies like KB Home KBH could see a positive impact as demand for affordable housing may rise due to a growing population. Infrastructure engineering and construction companies like MasTec, Inc. MTZ might also benefit from increased demand for infrastructure projects related to housing and facilities for new immigrants.

On the other hand, some stocks may be negatively impacted by the expiration of Title 42. Companies such as Southwest Airlines Co LUV may experience operational disruptions due to increased border control measures or changes in immigration policies.

More than that, providers of outdoor products and accessories like American Outdoor Brands, Inc. AOUT, which also sells personal security and defense products, may be impacted if public perception associates increased immigration with threats to national security or social stability.

Read next: Xi Jinping's Envoy Calls For Stability In US-China Relations To 'Prevent Any Accidents'

Photo: Shutterstock