Could Elon Musk’s DOGE Become a Driver for Growth Throughout Wall Street?

When Donald Trump won a resounding US Presidential election victory on November 5, 2024, there was much speculation over the role that Elon Musk would play in the next Trump administration. Now, as the newly formed Department of Government Efficiency (DOGE) gets into gear, it appears that Musk is taking a leading role in an unprecedented overhaul of government agencies.

\ Musk has a significant influence on the United States. Not only is he the world’s richest person, but he also has amassed a 218 million-strong following on his social media platform, X.

\ This means that Musk not only has the power to influence the course the US government takes, but he also has the platform to communicate policies to an engaged audience.

\ Although DOGE isn’t an official government department, it was created through one of Trump’s Presidential executive orders and plays the role of an advisory body with at least four employees dedicated to each government agency.

\ As the name suggests, DOGE is geared towards boosting efficiency in government, and Musk, as the department’s leader, has suggested that $2 trillion in government spending could be cut in a best-case outcome by the time work is completed by July 2026.

\ With a reported $1 billion in spending cuts delivered in three weeks, it’s clear that DOGE could have a lasting impact on Trump’s second term in the White House, but could the department drive growth on Wall Street as a result?

What DOGE Means for Wall Street

The reception for DOGE’s drastic cuts to government spending has been mixed throughout Wall Street.

\ JPMorgan CEO Jamie Dimon has claimed that many bankers were ‘dancing in the street’ at the prospect of deregulation following successive years of stringent regulator compliance requirements.

\ Dimon also noted that traders are due to benefit significantly from the volatility that DOGE’s unprecedented cost-cutting measures are driving across financial markets.

\ However, Bridgewater founder Ray Dalio took to LinkedIn to claim that the cutting measures could lead to a ‘purge’ of those who are positioned outside of Trump’s vision, claiming that the sweeping shift to the right of the political spectrum is mired in murky historical precedence.

\ “Elon Musk's appointment to head DOGE signals a potentially transformative approach to federal spending and regulation that could significantly impact both the stock and cryptocurrency markets,” explained Maxim Manturov, head of investment research at Freedom24.

\ “Musk's reputation as an innovator suggests that he could advocate for policies that reduce bureaucratic inefficiencies and promote technological advances in government operations. This could lead to increased investment in technology companies that align with these initiatives, potentially boosting stock prices in these sectors.”

\ The notion that DOGE could be positive for Wall Street was reflected in PwC’s 2025 outlook for Global Industry, which suggested that the Trump administration’s emphasis on deregulation and preserves or extends to tax cuts could contribute to growth and remove barriers to dealmaking.

\ However, the report also cautioned that sensitive areas underlie national security, or deals involving access to large data pools, could remain subject to regulatory scrutiny and may remain challenging.

\ With top Trump officials seeking to talk to markets about the upside of Musk’s activities at the forefront of DOGE, it’s clear that there’s still some convincing required before Wall Street gets fully behind Trump 2.0.

Will DOGE Improve the Economy?

Elon Musk recently announced that he’s teaming up with Jamie Dimon to convince bond markets that DOGE will be a positive force for addressing US debt.

\ Using his sizeable platform on X through a live-streamed Spaces event, Musk claimed that the measure would focus on convincing bond markets that they should place their confidence in US debt, suggesting that current levels fail to reflect the savings that he’s confident can be achieved.

\ More recently, Musk has reportedly considered paying out $5,000 in ‘dividends’ in the form of tax refunds to all American taxpayers raised by DOGE cost-cutting measures.

\ The move would shake up the US economy in a variety of ways. With much of the stimulus likely to be spent on US businesses and investments, this massive increase in consumer spending power could bring much more growth to the economy albeit with a very tangible danger of runaway inflation rates.

Deregulation at All Costs

Overall, the Department of Government Efficiency is likely to drive more positive sentiment throughout Wall Street thanks to its deregulation push, which could result in stronger M&A activity and greater investment in innovative US tech firms.

\ As for the economy, DOGE’s unprecedented cost-cutting measures will be challenging to forecast. Inflation will remain an ever-present threat as tariffs impact trade, but the arrival of such significant government stimulus could leave a lasting impact on the economy and Consumer Price Index (CPI).

\ The future under Trump 2.0 remains as unpredictable as ever, but Elon Musk is determined to convince Wall Street that good times are just around the corner.