Investors should gear up for what could be a market-moving State of the Union address with the president making comments on U.S.-China trade talks, drug pricing and infrastructure, among other matters, according to Wall Street policy strategists.
The speech, which will be given by President Donald Trump at 9 p.m. ET Tuesday, comes a little more than a week after the end of the longest U.S. government shutdown. The government remained shut down for 35 days as Trump and congressional leaders could not agree on funding for a wall along the U.S.-Mexico border.
The administration has suggested Trump will stress unity and bipartisanship in his address. However, Congress and the administration have not been able to come to an agreement on immigration policy or the border wall. In fact, Trump said last week he might have to declare a national emergency to build the border wall. Given all of this, investors will take their cues from the tone of the speech as well as which policy and political announcements the president could make.
"There are issues: infrastructure, drug pricing, and trade where he could build bipartisan support," Tom Block, Washington policy strategist at Fundstrat Global Advisors, wrote in a note Monday. But "while the White House has leaked the story line of the President wanting to give a speech that unifies, that seems out of character with recent comments by the President."