Possible Impact on Stocks and Crypto Market

President Donald Trump’s speech in Iowa today is expected to focus on affordability and the economy. The speech comes at a time when crypto, stocks, and broader markets are experiencing increased volatility with unstable swings. This is due to the imminent government shutdown, the delay of crypto bills, and the threatened Trump tariffs on Canada.

Trump Iowa Speech and the Economy Focus

According to The New York Times, the Trump Iowa Speech will center on affordability and economic policy. Notably, Iowa’s farming economy has faced higher costs due to tariffs that raised prices on machinery, tractors, and metal storage bins.

However, Trump, reportedly, will focus on policy outcomes rather than trade disputes. Scott Bessent said on X that he will join Trump to discuss the economic policies that are taking effect. He cited no tax on tips and no tax on overtime as key points.

Trump has a history of speaking about the broader market outlook. At his Davos speech last week, Trump mentioned the CLARITY Act and said he hoped to sign the crypto market structure bill. He also criticized Federal Reserve Chair Jerome Powell and said he would soon nominate a new Fed chair.

The stock and crypto markets notably reacted following Trump’s Davos speech last week and could again react to his speech in Iowa. A positive for markets will be comments on the potential next Fed chair.

As CoinGape reported, BlackRock’s Rick Rieder is currently the favorite to replace Fed chair Jerome Powell. Rider’s potential emergence as the next chair could be bullish for the stocks and crypto markets, as the BlackRock CIO has signaled that he favors lower interest rates.

Market Outlook as S&P 500 Hits New High

U.S. equities are in the green ahead of Trump Iowa speech. The S&P 500 reached a new all-time high at 6,989. Analyst Ted Pillows noted the index has reentered its trading channel and set a fresh record.

However, market performance has diverged across indexes. The S&P 500 gained 0.5%, while the Nasdaq Composite climbed 1%. In contrast, the Dow Jones Industrial Average fell 437 points, or 0.9%.

Crypto stocks have mostly declined during Tuesday’s session. Strategy’s MSTR fell to $157.59, down 1.8 percent. Coinbase’s COIN slipped to $209.66, while Circle’s CRCL dropped to $69.84. Robinhood’s HOOD also dipped, trading at $106.20. Bitmine’s BMNR stood out, rising to $28.26, up 2.18 percent. 

Meanwhile, Bitcoin traded near $88,000 at the time of writing. The price is about 10% below its yearly high. Notably, Bitcoin has lagged gold, which reached a record high, despite a weaker U.S. Dollar Index. It is worth noting that, in addition to the Trump Iowa speech, other events this week could trigger significant market volatility. 

This includes tomorrow’s FOMC meeting, with the focus on Powell’s speech for guidance since the Fed is likely to hold interest rates steady. The PPI inflation data also drops this week, which could trigger market volatility as market participants wait to see whether U.S. inflation is cooling.