U.S. Stocks Positive as Trump Calls for Increased Infrastructure Spending
In his first State of the Union speech on Tuesday night, President Donald Trump highlighted positive economic developments and touted initiatives such as the Republican tax-cut bill the president signed into law in December.
Trump also laid out his vision for reforming the nation’s infrastructure and ensuring what he considers “fair” trade with other nations.
Known for his harsh tone in speeches and periodic tweets, President Trump sought to deliver a softer, more optimistic address. The official theme of the speech was “a safe, strong and proud America.”
Trump spoke on various topics ranging from healthcare to immigration to infrastructure spending.
President Donald Trump boasted Tuesday night about killing Obamacare’s requirement that most Americans have health insurance or pay a fine.
President Trump called on Congress Tuesday to advance a $1.5 trillion plan to “rebuild our crumbling infrastructure”. To fund the plan, Trump said all federal appropriations should be “leveraged by partnering with state and local governments and, where appropriate, tapping into private sector investment.”
He also called for the legislation to reduce the time required to approve building permits to as little as one to two years.
Trump also said that prescription drugs are too expensive and he vowed to lower prices, taking a shot at the pharmaceutical industry.
The markets were mixed in response to the President’s speech. The major stock indexes rose with March E-mini S&P 500 Index futures rallying as much as 7.00 points, up 0.25%. March E-mini NASDAQ-100 Index futures are up 0.31% and March E-mini Dow Jones Industrial Average futures are up 0.25%.
The U.S. Dollar traded flat against most major currencies. Gains were likely capped by a firmer Euro. Although Treasury yields were slightly lower, demand for higher risk assets may be helping to boost the Dollar against the Japanese Yen.
Surprisingly, Trump did not specifically comment on the U.S. Dollar or interest rates which is probably why the reaction in the Forex markets was muted.
