In a report from Business Insider, Freedom Capital Markets chief market strategist Jay Woods said that updates on tariff policy, and plans of military action against Iran could impact markets.
- Woods noted that the State of the Union address is usually a non-market-moving event that does not impact Wall Street, but added that under
- President Trump, markets should “predict the unpredictable."
In addition to the above, Trump is also expected to speak about the economy and highlight affordability for Americans. - U.S. President Donald Trump’s State of the Union address is scheduled for Tuesday late evening.
In U.S. President Donald Trump’s State of the Union address, scheduled for Tuesday evening, there are two potential updates to watch out for that can move markets, according to Freedom Capital Markets chief market strategist Jay Woods.
In a report from Business Insider, Woods said that Trump may provide updates on his tariff policy, as well as plans to escalate a potential military action against Iran in his address, both of which would impact markets.
Woods noted that the State of the Union address is usually a non-market-moving event that does not impact Wall Street. “However, the one constant under President Trump is that we can predict the unpredictable," Woods reportedly told Business Insider on Tuesday.
Tariff And War
Woods said that Trump’s speech may provide more insights into the president’s plans or intent to continue to levy tariffs, despite the Supreme Court’s recent decision that struck them down. Any comments on tariffs were likely to impact markets, he reportedly said.
Following the apex court’s ruling, Trump announced a worldwide 10% tariff, which he scaled up to 15%. The new global levies can be in place for 150 days before requiring Congressional approval.
Meanwhile, tensions have been rising since Trump indicated that he could go to war with Iran if the country’s leadership did not agree to a deal to restrict its nuclear program.
Woods reportedly said that any comments from the president regarding an escalation of war against Iran could move markets.
Other Updates
In addition to the above, Trump is also expected to speak about the economy and highlight affordability for Americans, although this is unlikely to impact markets immediately.
However, any comments about the economy might influence investor outlook on inflation and the labor market, subsequently impacting key rate cut timing expectations by the Federal Reserve, as per the report.
Meanwhile, U.S. equities were in green on Tuesday. The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.64% at the time of writing, the Invesco QQQ Trust ETF (QQQ) climbed up 1.03%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged 0.72% higher.
Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
The iShares 20+ Year Treasury Bond ETF (TLT) was up by 0.09% at the time of writing, while the iShares 7-10 Year Treasury Bond ETF (IEF) fell 0.04%.
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