Trump's Speech, Oracle's Impact on Stocks, and Upcoming US CPI Release

Trump to Address the Nation Amid Economic Challenges

Key Speech Announcement

President Trump is set to deliver a televised address to the nation at 9 PM ET on Wednesday, which corresponds to 10 AM Beijing time on Thursday. This speech comes at a critical juncture as he approaches the end of his first year back in the White House, facing declining approval ratings and economic headwinds.

Defense Authorization Bill Passed

The U.S. Senate has overwhelmingly passed a $900.6 billion defense authorization bill for the fiscal year 2026, which will be sent to Trump for signing into law. This bill includes a 4% pay raise for military personnel, procurement of military equipment, and measures to enhance competitiveness against major adversaries. It also allocates $800 million for Ukraine and establishes a Baltic security initiative.

Federal Reserve's Rate Cut Potential

Federal Reserve Governor Christopher Waller indicated that there is still room for a 50 to 100 basis point rate cut, but emphasized a cautious approach. He noted that the job market is not experiencing a sharp decline and inflation expectations remain stable, allowing for a gradual adjustment of interest rates.

Oil Prices Surge

Following Trump's announcement of a comprehensive maritime blockade against Venezuela, oil prices have risen, with both WTI and Brent crude increasing by over 1%. The blockade is part of sanctions against the Maduro government, which has been labeled a "terrorist organization."

Upcoming CPI Data Release

The U.S. Consumer Price Index (CPI) report for November, initially scheduled for December 10, has been delayed and is now expected to be released on Thursday. Analysts express concerns about the reliability of the data due to interruptions caused by a government shutdown.

Musk's Optimism for xAI

Elon Musk expressed optimism about his AI startup, xAI, stating that it could achieve artificial general intelligence (AGI) as early as 2026 if it survives the next few years.

Stock Market Performance

The major U.S. stock indices fell, with the Dow Jones down 0.47%, the Nasdaq down 1.81%, and the S&P 500 down 1.16%. Notable declines were seen in tech stocks, including Oracle, which dropped over 5% due to concerns about its AI investments.

Micron Technology's Strong Earnings

Micron Technology reported better-than-expected earnings and guidance, leading to a nearly 7% increase in after-hours trading. The company raised its capital expenditure forecast for fiscal 2026.

Cannabis Reclassification

Trump is expected to sign an executive order on Thursday to reclassify cannabis as a Schedule III substance, which has led to a rise in cannabis stocks.

Netflix's Acquisition Plans

Netflix plans to finalize its acquisition of Warner Bros Discovery within the next 12 to 18 months, emphasizing that its offer is superior to competing bids.

Conclusion

As Trump prepares for his address, the economic landscape remains complex, with significant developments in defense spending, monetary policy, and corporate earnings shaping the market's outlook.